Data indicated that approximately 8 million barrels were drawn from the reserve during this week. This was in addition to withdrawals of 9.1 million barrels the week prior and 9.9 million barrels in the week ending May 15.
The report further highlighted that total US crude oil inventories, encompassing both commercial and government reserves, fell to 709.8 million barrels from around 878 million barrels noted in early April.
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The reserve was established following the Arab oil embargo in the 1970s within salt caverns across the US Gulf Coast. It has a maximum capacity of approximately 713.5 million barrels.
On paper, the reserve is set to release around 4.4 million barrels per day, as per the Energy Department’s website. After a presidential sale order, it takes 13 days for oil from the system to reach the market.
However, a 2016 analysis by the Energy Department suggested that the effective release capacity might be constrained to between 1.4 million barrels and 2.1 million barrels per day.
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During the 2022 release in response to Russia’s invasion of Ukraine, the daily output never exceeded 1.1 million barrels, according to an analysis of Energy Information Administration data by ClearView Energy Partners.
