US oil reserves hit lowest since 1982 amid Iran conflict

The United States’ Strategic Petroleum Reserve (SPR) has seen a significant reduction, with current levels reported at 289.7 million barrels, marking the lowest since November 1982. This decrease comes amid ongoing conflict in Iran, which has disrupted global oil supply chains. The weekly draw of 3.7 million barrels highlights the dwindling cushion available for the U.S. to manage supply disruptions. This situation is occurring in a market already experiencing tighter conditions, with Brent crude prices in the high-$80s to low-$90s range and West Texas Intermediate (WTI) in the low-to-mid-$80s. Key Takeaways Market activity suggests that the diminishing U.S. oil reserves could indicate a tightening supply, potentially leading to higher crude prices. The ongoing conflict in Iran continues to impact global oil supply, with implications for future price movements. Current market pricing appears supportive of scenarios where oil prices might reach new highs by the end of the year. What to Watch Key actors such as OPEC and the International Energy Agency may influence future oil supply decisions, impacting prices. Observers will be watching for potential geopolitical developments in the...