The U.S. strategic oil reserves are in a critical condition. As the Strait of Hormuz, one of the most vital oil transport routes in the world, is under pressure due to conflicts and supply disruptions, the inventory of these reserves has reached its lowest level since 1982. According to published reports, the inventory of these reserves was approximately 283 million barrels at the end of September 2026.
The Importance of the Strait of Hormuz and Supply Challenges
The Strait of Hormuz, as a key passage for oil tankers, means that any disruption in the passage of these tankers could lead to a reduction in global supply, increased prices, and pressure on consuming countries. In this situation, U.S. emergency reserves, which were created to meet urgent needs during wars or sanctions, are under severe pressure.
The U.S. Strategic Petroleum Reserve (SPR) was established in 1975 and has been collecting and storing oil over the years with the aim of maintaining the country's energy security. However, following recent crises, these reserves have significantly decreased and are currently facing a severe shortage on the brink of escalating the Gulf crisis.
Swap Contracts and the Challenge of Rebuilding Reserves
The U.S. Department of Energy has implemented swap contracts instead of direct oil sales to prevent further depletion of reserves. These contracts allow companies to receive oil and return the same amount plus an additional percentage in the future. However, the execution of this program is dependent on market conditions, and companies may have less incentive to participate.
Currently, the Department of Energy predicts that the inventory of reserves after the planned oil deliveries may reach about 243 million barrels, a level that raises concerns about the reduction of the U.S. margin of safety against new disruptions in oil supply.
Additionally, the long repayment time for swap contracts and existing infrastructure issues have led to further challenges. Given that the cost of rebuilding reserves is estimated at around $20 billion, rebuilding reserves solely relying on swap contracts will not be feasible and will require additional financial resources.
Ultimately, despite a relative improvement in oil exports from the Gulf region, security threats continue to pose a risk of supply disruptions, and it seems that U.S. strategic reserves are in a fragile condition.
