Trump Drains US Strategic Oil Reserves Beyond Biden's Record
Amid growing voter frustration over fuel price surges, President Donald Trump has taken drastic action by drawing down the US Strategic Petroleum Reserve (SPR) at a faster rate than his predecessor, Joe Biden. The move is politically ironic given Trump’s previous vehement criticism of similar policies during his 2022 campaign.
Recent data shows that oil releases from the SPR under Trump’s administration have not only surpassed previous records but also brought national crude oil stocks close to their lowest level since the early 1980s. At that time, the US economy was significantly smaller and consumed less energy than today.
Emergency measures taken this spring highlight the scale of the oil crisis triggered by the conflict with Iran. The effective closure of the Strait of Hormuz since late February—the world’s most critical energy distribution route—has disrupted the flow of over 1.2 billion barrels of crude oil, according to S&P Global Energy data.
To cover the supply gap, the SPR released a record 9.9 million barrels (about 2.6%) in the week ending May 15. Since the conflict with Iran began, SPR stocks have dropped by 10% to 374 million barrels—the lowest level since July 2024, per US Energy Information Administration (EIA) data.
Interestingly, the emergency oil is not solely allocated to domestic US refineries. Kpler estimates suggest around half of the crude released in April and May was exported abroad. Asian and European nations, severely affected by the Strait of Hormuz closure, now rely on US crude as a substitute.
Helima Croft, global commodities strategy chief at RBC Capital Markets, warned the crisis could persist long-term. “Even if a peace deal is reached tomorrow, it would take about six weeks to reopen the strait’s bottlenecks. Europe could face energy rationing,” she said.
Beyond the strategic reserve, commercial oil stocks in Cushing, Oklahoma—the pricing hub for West Texas Intermediate (WTI) futures contracts—have also plummeted. Inventories there fell from 33 million to around 24.5 million barrels over the past seven weeks.
This approaches the operational low of 20 million barrels. “You can’t drain it to zero due to sediment at the tank bottom. A certain volume is needed to keep facilities operational,” added Smith.
Despite pressure to restrict or ban exports to curb domestic prices, the White House confirmed this option is not currently under consideration. Analysts warn that export restrictions risk destabilising global energy systems and harming domestic producers and refineries.
The United States has released 172 million barrels of oil from the Strategic Petroleum Reserve (SPR) as part of a collective action by the International Energy Agency (IEA).
The US and IEA agreed to release 400 million barrels of emergency oil reserves to curb soaring energy prices caused by the US-Israel war with Iran.