The U.S. is maxing out its strategic oil reserves as Trump vows to control the Strait of Hormuz - MarketWatch
The U.S. is maxing out its strategic oil reserves as Trump vows to control the Strait of Hormuz - MarketWatch
Source: MarketWatch
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DW NOTE
The Strategic Petroleum Reserve was built to cushion supply shocks, not to paper over structural mismatches between what America consumes and what it can produce. Refilling it during a price spike — WTI up 12% last week to $76.81 — means buying high after selling low. Trump's vow to "control" the Strait of Hormuz is geopolitical theatre; the waterway already reopened in early July under a ceasefire, and traffic has resumed at 35-40 ships per day. The real problem is that global oil supply fell 3.7 million barrels per day in 2026 while demand dropped only 1 million b/d. No reserve can fix that gap.