Trump promised to refill America's emergency oil reserve. Instead, it just saw its largest weekly drain in history. [View all]
The Strategic Petroleum Reserve just posted what may be its largest single-week drawdown on record. Roughly 10 million barrels came out of the SPR in one week, leaving the total stockpile under 375 million barrels
That number lands awkwardly. President Trump campaigned on refilling the reserve after the heavy Biden-era sales of 2022 and 2023. Five months into his second term, the tank is moving the other way, and fast.
Why the Reserve Is Shrinking Again
West Texas Intermediate closed at $101.56 a barrel on May 11, after spiking to $114.58 on April 7, the acute phase of the Iran conflict that has rattled tanker traffic through the Strait of Hormuz. A year ago, WTI was trading in the high $50s to mid $70s.
The oil ETF tells the same story in plain English. United States Oil Fund (NYSEARCA:USO) is up roughly 32% in the past month and 121% year to date. When crude is this elevated, the government has two choices: pay top dollar to buy barrels for the reserve, or quietly let some out the back door to soften domestic prices and shore up allies. This week, it chose the second.
https://www.msn.com/en-us/money/markets/trump-promised-to-refill-america-s-emergency-oil-reserve-instead-it-just-saw-its-largest-weekly-drain-in-history/ar-AA23FznH
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