U.S. Oil Reserves Hit Decades Low Amid Iran War

Private oil storage levels in Cushing, Oklahoma, have dropped to near-minimum operating levels as companies draw down inventories to capitalize on surging energy prices. This depletion occurs alongside a broader decline in the United States Strategic Petroleum Reserve, which has reached its lowest levels since 1982.

The scarcity of stockpiles is driven by an ongoing war between the United States and Iran, which has increased global market fragility. In response to the conflict, Persian Gulf producers, including Saudi Arabia, are seeking expanded overseas storage to avoid reliance on maritime choke points such as the Strait of Hormuz.

While oil continues to flow through the Cushing pipeline network to ports and refineries, the industry faces significant constraints in refining capacity. These bottlenecks have kept diesel prices near yearly peaks. Amos Hochstein, a senior adviser on energy and foreign policy, has advocated for producers to invest in storage located outside their own countries to mitigate these risks.