US Not Planning to Sell Oil from SPR, Source Reveals

• A U.S. source confirmed that selling oil from the SPR is 'not currently being discussed' despite the recent military actions against Iran
• The SPR currently contains over 415 million barrels, down from previous levels after President Biden ordered the largest-ever sale of 180 million barrels over six months following Russia's 2022 invasion of Ukraine
• Both the Biden and Trump administrations have been limited in refilling the reserve, as President Trump requires Congressional approval for funding to purchase crude oil

Summary

The U.S. government is not considering releasing oil from its Strategic Petroleum Reserve (SPR) following recent U.S. and Israeli military actions against Iran, according to a U.S. source on March 2. Officials stated that "oil markets remain well supplied," indicating no immediate supply concerns.

Key Facts:

• The SPR, located on the Louisiana and Texas coasts, currently holds more than 415 million barrels of crude oil, making it the world's largest emergency stockpile
• No discussions are underway regarding an SPR sale at this time
• Former President Biden authorized the largest-ever SPR release of 180 million barrels over six months in 2022 following Russia's invasion of Ukraine
• The Biden administration repurchased only a small amount of oil after that historic sale
• President Trump faces constraints in replenishing the reserve, as Congressional approval is required for funding

Market Context:

The announcement comes amid heightened geopolitical tensions in the Middle East, with related Reuters articles noting impacts on global shipping, oil supply disruptions, and price volatility. The decision not to tap the SPR suggests U.S. authorities do not anticipate significant supply shortages despite the military escalation.

Implications:

The government's assessment that markets remain adequately supplied may help stabilize oil prices and reduce concerns about supply disruptions. However, the limited ability to quickly refill the SPR—due to Congressional funding requirements—means the U.S. has less flexibility to respond to future supply shocks following the 2022 drawdown.