US strategic crude reserves drop to 12-year lows

Bloomberg carries an article on Thursday, citing that the US strategic crude reserves (SPR) have dropped to the lowest level in more than 12 years, as rising shale oil output reduces the nation’s need for an emergency buffer against shortages.

Key Points:

“Inventories declined by about 13 million barrels over 17 consecutive weeks as the Energy Department delivered supplies it sold in recent months. That brought stocks down to 682 million as of June 30.”

“These drawdowns won't end any time soon. The Trump administration has plans to sell another 270 million barrels of crude from the SPR over the next decade to help reduce the country's debts. This is over and above the 190 million-barrel sale planned for 2018-2025.”