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Compound Capital Advisors Founder and CEO Charlie Bilello stated that the United States' Strategic Petroleum Reserve (SPR) has moved down for the 57th week in a row, accumulating an overall decline of 31%.
"The U.S. Strategic Petroleum Reserve moved down for the 57th consecutive week, now at its lowest level since 1984," Bilello said in a tweet published on Thursday. "The 31% decline in reserves this year is the largest on record by a wide margin."
Bilello's statement is in line with a September Reuters article on the same topic, which put emergency U.S. crude oil stocks at 434.1 million barrels.
"OIL MARKET: Another **huge** weekly release from the SPR, injecting ~7.7m barrels into the market last week (or ~1.1m b/d), according to DoE," said Bloomberg energy and commodities columnist Javier Blas in a tweet published on Tuesday. "If my data is correct, last week saw the third largest SPR oil weekly release ever, only behind two individual weeks in August and September."
The SPR is the world's largest supply of emergency crude oil, and it was mainly established to reduce the potential impacts of petroleum product supply chain disruptions, as well as to meet the obligations of the United States under the international energy program, according to energy.gov.
In the past, large emergency SPR sales have raised concerns regarding how future energy supply interruptions will be corrected.
According to an Argus article, Deputy Energy Secretary David Turk stated the Biden administration will be continuing to use the SPR to help in alleviating pressure on the market.
"I feel quite good with what we've done with the Strategic Petroleum Reserve," Turk said. "That has had a downward pressure on the market. We still have some additional ability to use the Strategic Petroleum Reserve over the coming weeks and months as needed."