U.S. Crude Inventories Drop 17.8 Million Barrels to 1-Year Low as Iran War Drains Buffers
Updated
Updated · Newsweek · May 25
U.S. Crude Inventories Drop 17.8 Million Barrels to 1-Year Low as Iran War Drains Buffers
3 articles · Updated · Newsweek · May 25
U.S. crude inventories fell 17.8 million barrels in the week ended May 15, pushing total stocks—including the SPR—to their lowest level in almost a year.
The drawdown reflects record exports and releases from the Strategic Petroleum Reserve after the Iran war and Hormuz Strait closure disrupted global supply and sent oil prices to multi-year highs.
445 million barrels of commercial crude remain, about 2% below the five-year average, while distillate stocks are even tighter and analysts say the shrinking buffer could lift summer gasoline and diesel prices further.
Gasoline has already climbed about 50% to above $4.50 a gallon, and one analyst warned U.S. crude could drop below 400 million barrels within nine weeks if export demand from Asia and Europe stays elevated.
Trump authorized a 172 million-barrel SPR release over 120 days to ease prices, echoing a tool he once criticized Biden for using; analysts say curbing exports would likely worsen global shortages and eventually raise U.S. prices.
As the US drains its emergency oil reserves, what happens when this last line of defense runs out?
Beyond fuel, how does the Hormuz closure threaten global food security and critical manufacturing supply chains?
U.S. Crude Inventories Plunge by 17.8 Million Barrels: Causes, Global Fallout, and the Race to Rebuild Energy Security
Overview
The United States saw a record 17.8 million barrel drop in crude oil inventories in May 2026, reaching the lowest level in nearly a year. This sharp decline was driven by ongoing geopolitical instability, especially the war involving Iran, which disrupted oil flows from the Persian Gulf and led to the closure of the Strait of Hormuz. The resulting uncertainty pressured global crude markets. In response, the U.S. ramped up crude exports to a record high, helping to fill international supply gaps. These combined factors created a dramatic shift in both U.S. and global oil inventories, highlighting the market’s vulnerability to geopolitical events.