API warns SPR drawdowns limit emergency intervention capacity as gasoline stocks fall by 38 million barrels this season.
The US Strategic Petroleum Reserve has declined to 350 million barrels, approaching a functional floor of 70 million barrels required for operational integrity. This level restricts the government’s ability to respond to supply disruptions, according to industry warnings.
Gasoline inventories have dropped by 38 million barrels, nearly matching typical summer driving season consumption. While rig counts and output from the Permian Basin and Alaska provide some offset, concerns persist over the SPR’s diminished capacity to mitigate future shocks.
The API emphasized that domestic production gains cannot replace the need to reopen critical supply routes, such as the Strait of Hormuz, to stabilize markets.