US Crude Oil Reserves Hit Two-Year Low Amid Global Tensions

May 21, 2026

68 min

May 21, 2026 23:30

US crude oil inventories fall sharply, drop to lowest level in nearly 2 years — EIA

## Sharp Decline in US Oil Inventories

US crude oil inventories have significantly decreased, reaching their lowest point in nearly two years. This drop is attributed to ongoing global supply disruptions, particularly due to the conflict involving Iran.

## Strategic Petroleum Reserve Depletion

The Strategic Petroleum Reserve (SPR), the largest emergency oil supply in the world, has also seen a substantial reduction. The SPR fell by 9.9 million barrels last week, marking the eighth consecutive weekly decline. This brings the reserve to its lowest level since July 2024.

## Impact of the Iran Conflict

The conflict in Iran, which began in February 2026, has severely impacted oil transit through the Strait of Hormuz. This vital corridor typically handles a significant portion of global oil flows, and its disruption has tightened international supply.

## US Response and Market Effects

In response, the US has increased refinery activity, with utilization rates climbing to 91.6% to meet rising demand. However, gasoline prices have surged, reaching $4.49 per gallon, the highest since the energy crises earlier in the decade.

## Concerns Over Emergency Preparedness

While the SPR releases are cushioning the impact of declining commercial inventories, there are growing concerns about the US's emergency preparedness. The ongoing depletion of the SPR raises questions about the country's ability to respond to future disruptions, such as natural disasters or further geopolitical tensions.

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