America’s Shrinking Oil Stockpiles Amid Global Energy Strain

America’s oil reserves are declining quickly, with U.S. crude inventories experiencing weekly drops. Exports are up, and the nation’s emergency reserves are being utilized to counteract the effects of the conflict with Iran on global energy markets.

Recent data from the U.S. Energy Information Administration (EIA) shows a decrease of 17.8 million barrels in crude inventories for the week ending May 15. This significant drop follows a trend of weekly declines, reducing total stocks, including the Strategic Petroleum Reserve, to the lowest point in nearly a year.

Analysts have expressed concern that these declines diminish a key safety measure intended to protect the U.S. from major supply disruptions. This could limit the country’s ability to respond if the situation worsens.

Since the war began on February 28, the closure of the Hormuz Strait, through which about 20% of the world’s oil previously traveled, has driven oil prices to highs not seen in years. The head of the International Energy Agency has referred to this situation as the largest energy crisis in history.

U.S. consumers now face higher expenses, with gas prices rising by approximately 50% to over $4.50 per gallon. Other products, like jet fuel, have also seen similar price hikes. Experts believe that using U.S. stocks could further increase prices as summer approaches.

Where Is America’s Oil Going?

During the initial year of President Donald Trump’s second term, U.S. oil inventories grew, aligning with a promise to replenish strategic reserves. However, the EIA’s recent Petroleum Status report reveals consecutive weekly declines, bringing stockpiles to levels seen in June 2025.

Currently, excluding the Strategic Petroleum Reserve, U.S. crude oil inventories stand at 445 million barrels, about 2% below the five-year average. Distillate inventories, such as diesel and heating oil, have fallen even further.

Energy analyst Tom Kloza mentioned that ignoring the signals regarding gas and diesel prices could be risky. Bob Yawger, director of energy futures at Mizuho, noted that if the drawdown continues at its current pace, inventories might dip below 400 million barrels in nine weeks. This situation would require more exports from the U.S. to fulfill global demand, further accelerating domestic declines.

Bob McNally, founder of Rapidan Energy Group, explained that inventory drawdowns have previously functioned as shock absorbers to prevent greater oil price increases. However, when inventories reach minimum operational levels, this effect will diminish. The loss of supply from Hormuz will need to be countered by reducing demand, which necessitates even higher oil prices.

Trump Taps Strategic Reserves After Criticizing Biden

The recent decline in inventories is partly due to the release of Strategic Petroleum Reserve (SPR) supplies. In March, the Trump administration announced the release of 172 million barrels from the SPR over 120 days as part of a global effort to lower energy costs.

Trump defended the move, saying the U.S. can replenish the reserve later when prices decrease. This approach mirrors actions he previously criticized President Biden for adopting. In 2022, Biden ordered the largest SPR release in history to combat rising fuel costs following Russia’s invasion of Ukraine. At that time, Trump and other Republicans argued that the reserve should not be used to manage prices except in emergencies.

Now, faced with a supply shock and increasing fuel costs, the Trump administration has resorted to the same strategy, albeit under different circumstances.

U.S. Steps in With Record Exports

The U.S. has taken steps to stabilize global markets by increasing exports to record levels amid an intensified energy crisis, particularly in Asia and Europe. However, this decision has attracted criticism from those who believe emergency supplies should address domestic price spikes.

Democratic Representative Ro Khanna expressed concerns, questioning why American oil should be exported when domestic prices are high. Khanna proposed legislation to ban exports when gas prices exceed $3.12 per gallon for a week.

Willy C. Shih, an international trade expert, said oil and oil products are globally traded commodities, with Asia and Europe facing more severe impacts. Restricting exports might have significant geopolitical repercussions, undermining the U.S.’s global standing.

Bob McNally warned that prohibiting exports would increase global oil prices. While pump prices in some U.S. regions might drop temporarily, they would eventually rise as refiners slow operations.

Energy market analyst Philip Verleger noted that halting exports could spark a “real trade war” and possibly lead to a global economic downturn.