Strategic oil reserves rapidly dropping

[SamuelTheThird]

added: and that 330 million is far from all useable. The storage cave has the potential to collapse if you take out too much.

Link to tweet

[GreatGazoo]

1. I don't know if this narrative is part of the push for invading Iran or

if it is just panic mongering for clicks but the oil shortage predicted in March has not materialized. Oil prices continue to drop.

There was a glut of oil last year and now there is even more production. Canada tripled exports.

There is also destruction of demand as China reduced consumption by over 30% within weeks.

It is fun to think that the economy is going to implode and we are all going to starve but that isn't reality.

China has slashed crude imports since the Iran war began, with May imports plunging 29% to 7.8 million barrels per day—the lowest level in eight years. Until recently, many analysts viewed those cuts primarily as a function of China's enormous oil stockpile and high crude prices. Now another explanation is emerging: China may simply need less fuel.

https://oilprice.com/Latest-Energy-News/World-News/China-Is-Learning-to-Use-Less-Oiland-Thats-a-Bigger-Deal-Than-It-Sounds.html

Iran supplying China and Pakistan by rail:
https://www.moneycontrol.com/world/iran-bypasses-us-blockade-with-rail-oil-exports-to-china-pakistan-freight-traffic-surges-article-13936437.html

China selling its excess fuel to Australia:
https://oilprice.com/Latest-Energy-News/World-News/Australia-Turns-to-China-for-Emergency-Jet-Fuel-Supplies.html

[SamuelTheThird]

2. China didn't reduce oil consumption by 30% in a matter of weeks

They reduced imports by 30%. Not the same thing.

It isn't 'panic mongering' to accurately report the levels of strategic oil reserves.

Here, you can learn something

https://www.democraticunderground.com/100221321021

[GreatGazoo]

4. Dan Dicker wrote a book 15 years ago

He has a right to be wrong now. In March everyone expected the worst and oil went to $120 but what we have seen is that the dynamics are very different now than they were in 1973 or 2011.

Yes 30% was the reduction in imports. Fair enough but traders and watchers are shocked by how China reduced consumption and that was underlined when China exported refined oil products including jet fuel during this alleged crisis.

Bottom lines: Hormuz situation has had far less impact than expected, and the longer it goes on the more the world will minimize not just Hormuz but oil in general. This is a shipping and transport issue, not a shortage of oil.

[LetMyPeopleVote]

3. Critical oil storage hubs hit decades-low levels with no relief in sight

The biggest U.S. commercial oil storage facility has reached an “operational stress” level.

Our strategic oil reserves were getting dangerously low. That's why he surrendered to Iran. Like China in a tariff war, Iran could hold out longer. Just classic American arrogance that suddenly slammed into the wall of reality.

www.nbcnews.com/business/ene...

— Dan 🔵🌊🇺🇸 (@arepublic86.bsky.social) 2026-06-17T23:40:46.484Z

https://www.nbcnews.com/business/energy/cushing-oil-reserves-stress-iran-war-rcna350536

Crude oil stockpiles across the country continued to plunge this week as the Trump administration tapped America’s backup supply of energy products to help keep gas prices down while the Strait of Hormuz remains effectively shut to vessel traffic.

Draining the stockpiles has caused the U.S. Strategic Petroleum Reserve, located in Louisiana and Texas, to fall to its lowest level since 1983, according to Energy Department data issued Monday.

Inventories held at a second critical oil hub in Cushing, Oklahoma, tumbled to just 20 million barrels, according to data released Wednesday by the Energy Information Administration. That brings the country’s largest commercial storage facility to an “operational stress” level, according to Rory Johnston of the research firm Commodity Context.

“Without any immediate relief on the horizon,” this is a “concerning pressure point,” Johnston said.....

During the second week of June, commercial stockpiles of crude oil fell 8.3 million barrels, while 8.9 million more barrels were drained from the Strategic Petroleum Reserve. It was the 10th straight week of declining U.S. reserves.

[Gaugamela]

5. The MSM isn't covering this, but financial

and energy analysts are all saying the same thing. Gas prices are expected to start rising in July, and the US will start experiencing gas shortages in August/September. The global supply of fertilizer is also cut by 30%, and other commodities like aluminum and helium are affected.

All experts agree that the situation is unprecedented.