Why drawing down the Strategic Petroleum Reserve is a smart business decision 

The Iran war has pushed oil prices higher over the past several months. From around $60 per barrel in early February, it reached a peak of $113 per barrel in April, before settling down to just under $80. This sent the cost of gasoline at the pump to above $5 per gallon in some areas. It also impacted the cost of goods and services, pushing inflation to its highest level since April 2023.

Recently, the president authorized 172 million barrels of oil to be released from the Strategic Petroleum Reserve. Though this action has been justified as a means to reduce the pain of higher prices for consumers, a closer analysis suggests that it is a smart business decision, with little downside risk. 

Recall that Congress created the reserve in 1975 in the aftermath of the 1973-1974 oil embargo, to dampen short-term oil shortages. The current capacity is 714 million barrels, as set by Congress. Historically, its peak capacity was 727 million barrels back in December 2009. In 2025, the reserve was at 413 million barrels. By the most recent count, June 12, it was down to 340 million barrels, its lowest level in more than 40 years. 

The United States is the world’s largest consumer of oil. In 2025, it consumed 20.6 million barrels of oil each day on average, the highest level since 2007. To meet this need, the U.S. is also the largest producer of crude oil in the world. Given that there........

© The Hill