27 January 2023 | Other

Wood Mackenzie analysts think the U.S. has enough petroleum in strategic reserve

The U.S. strategic petroleum reserve (SPR) decreased by more than 40% in two years. The reserves were 371.57 million barrels on January 20, compared to 638.08 million barrels a year ago.

Has the SPR reached a dangerously low level? Analysts at Wood Mackenzie believe it hasn’t. They state that SPR values ​​are both operationally and strategically safe.

If reserves are below 122 million barrels, the drawdown capacity significantly decreases. According to experts, more than 4 million barrels per day might be sold for 60 days in case of emergency, with current reserves of 371 million barrels.  

WoodMac analysts emphasize the growth of the country's commercial crude oil inventories. Also, they admit that these reserves, with the increasing production in the U.S., might provide support if necessary to meet the demand in the global market.

Experts say that this provides stable consumption with the current amount of SPR, considering the growing internal production, which has already reached 13 million bpd today.

Company MarketCheese
Period: 14.05.2025 Expectation: 1650 pips
Technical and fundamental background supports AUDCAD
07 May 2025 67
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Period: 08.05.2025 Expectation: 550 pips
EURUSD to drop to 1.13000
07 May 2025 50
Period: 13.05.2025 Expectation: 240 pips
Brent crude price rebound to continue up to 65
07 May 2025 52
Period: 14.05.2025 Expectation: 1000 pips
Buying GBPUSD amid trade talks and weaker dollar with target at 1.344
07 May 2025 32
Period: 12.05.2025 Expectation: 1500 pips
USDJPY rebound fades ahead of Fed meeting
06 May 2025 66
Period: 30.05.2025 Expectation: 975 pips
Natural gas maintains upside potential within megaphone pattern
06 May 2025 67
Go to forecasts