US strategic oil reserves have reached critically low levels

Over the course of 2,5 years, the US administration has squandered a significant part of the country's strategic oil reserves. President Joe Biden directed them to the domestic market to hold down fuel prices. Currently, US oil reserves are at a 30-year low, reports the local Oil and Gas Association (USOGA).

The publication notes that at the end of 2021, the US strategic oil reserves amounted to 600 million barrels. Now there are about 362 million barrels left there, and the missing 40% of volumes from the previous level must be compensated. About 238 million barrels were spent on stabilizing the fuel market and were sent to refineries.



This did not help the market very much, but reserves reached a critically low level, threatening the security of the country. Moreover, it is advisable for Biden to have time to fill the reservoirs in Louisiana and Texas before the presidential election. However, this has become much more difficult; oil is now more expensive.

The US Department of Energy promises to replenish reserves as soon as quotes on stock exchanges become more profitable. But the USOGA warns that not everything is as simple as some think. The thing is that the United States mainly produces light, low-sulfur oil, and the shortage of heavy grades will also have to be made up. This indicates that the US cannot do without importing raw materials from other countries.