U.S. oil reserve falls to lowest level in more than 40 years

The U.S. Strategic Petroleum Reserve dropped below 300 million barrels earlier this month, its lowest level in more than four decades. The reserve stood at 415 million barrels at the start of the year.

Kevin Book of ClearView Energy Partners said the reserve is being drawn down during a supply shortage tied to the war with Iran and uncertainty over the Strait of Hormuz. He said U.S. releases are part of a broader international effort to add oil and refined products to the market.

Book said oil prices likely would be significantly higher without the releases, possibly by $10 to $15 a barrel. He also said future efforts by governments to rebuild stockpiles could keep prices from falling as much after the current crisis eases.

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