US Strategic Petroleum Reserve just fell below 300M barrels for the first time since the early '80s. Now sitting at ~243M after the Iran drawdown.
Former energy advisors are saying this isn't just low — it's structurally risky. The underground salt caverns storing the oil could actually be damaged at these levels. GAO report literally said officials are holding things together with "Band-Aids."
Energy Dept says it's fine, just oil-to-water ratio shifting. Cool.
But here's what matters: this reserve exists to cushion oil shocks. And it's been drawn down to levels we haven't seen in 40+ years. Whether you think the caverns are fine or not, the buffer is gone.
That alone should make you think twice about energy exposure and macro risk heading into whatever comes next.
Former energy advisors are saying this isn't just low — it's structurally risky. The underground salt caverns storing the oil could actually be damaged at these levels. GAO report literally said officials are holding things together with "Band-Aids."
Energy Dept says it's fine, just oil-to-water ratio shifting. Cool.
But here's what matters: this reserve exists to cushion oil shocks. And it's been drawn down to levels we haven't seen in 40+ years. Whether you think the caverns are fine or not, the buffer is gone.
That alone should make you think twice about energy exposure and macro risk heading into whatever comes next.