AhlulBayt News Agency (ABNA): The Financial Times reported in an article that U.S. crude oil reserves decreased significantly over the past week, a development attributed to increased activity at the country's refineries to capitalize on rising fuel prices following heightened tensions with Iran.
According to this report, U.S. commercial crude oil reserves fell by 7.2 million barrels, and the country's strategic reserves also decreased by 3.8 million barrels, with a significant portion of this oil being used to produce gasoline, diesel, and jet fuel.
Citing U.S. government data, the report added that the country's refineries are operating at 97 percent of their capacity, while U.S. energy companies have simultaneously increased oil exports to Asian and European markets.
However, analysts have warned that a larger-than-expected decline in crude oil and gasoline reserves will limit America's ability to meet global market demand.
According to the Financial Times, Matt Smith, an energy market analyst, stated that the combined commercial and strategic oil reserves of the United States have decreased by about 20 percent since April.
He emphasized that Washington has used its strategic reserves to control global oil prices while simultaneously increasing exports, but the current pace of drawdown is unsustainable. Rory Johnston, another oil market expert, also described the current level of U.S. crude oil and gasoline reserves as concerning.
The newspaper concluded by warning that U.S. strategic oil reserves, with a decline of 3.8 million barrels, have reached approximately 307.7 million barrels, the lowest level in more than four decades.
Experts believe that these reserves approaching the minimum operational level increases the risk of damage to oil transmission infrastructure and reduces America's ability to respond to potential supply shocks; an issue that could pave the way for a significant surge in global oil prices in the future.
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