U.S. oil reserves plummet to decades-low levels amid soaring demand

U.S. oil supplies have dropped to their lowest levels in decades. The Strategic Petroleum Reserve hit a 28-month low, while commercial crude stockpiles fell to a 22-year low in early June. At the same time, refineries are running at near-full capacity as demand remains strong. In March, the Trump administration authorised the release of 172 million barrels from the Strategic Petroleum Reserve. So far, only around 50 million barrels have been disbursed. By the week ending June 1, the reserve had shrunk to 357 million barrels, its lowest point since early 2021.

Commercial crude oil inventories also declined sharply, dropping by 16 million barrels last week. Total stockpiles now stand at 434 million barrels, the lowest combined level since 2000. Meanwhile, gasoline reserves have fallen to 215 million barrels, the smallest amount for this time of year since 2014. Despite the tight supply, refineries are operating at 94.7% capacity—well above seasonal norms. They produced 9.4 million barrels per day of gasoline in the first week of June. U.S. crude exports also hit a record high of 6.0 million barrels per day in mid-May. The drop in inventories has not yet caused a surge in fuel costs. Average gasoline prices fell from $4.48 to $4.22 per gallon over the past two weeks.

The U.S. oil market remains under pressure, with both strategic and commercial reserves at multi-year lows. Refineries are running at high rates to meet demand, while exports continue to climb. For now, pump prices have eased slightly, but supplies stay critically tight.