[Salon] US oil reserves are bottoming out

[Chas Freeman <cwfresidence@gmail.com>]

The US oil industry has dwindling options to offset losses from the shuttered Strait of Hormuz. Total US reserves of crude oil and refined fuels, including those held in the Strategic Petroleum Reserve, fell to 1.57 billion barrels this week, the lowest level since 2004, according to new federal data. Since the Iran war began, US oil exports have reached a record high and have helped stave off extreme global price spikes. But the precipitous drawdown since March essentially erases the stockpile built up since the 2010s shale boom. And it leaves US consumers increasingly vulnerable to impending surges in the price of gasoline that industry executives are reportedly scrambling to warn the White House about. The emergency release approved in March will run out by July, leaving a narrow window for Trump to finalize a deal with Tehran — or authorize more releases.