The nation's emergency oil stockpile has fallen to its lowest level in more than four decades as President Donald Trump's administration continues a major release of crude oil aimed at keeping energy costs in check for American consumers.
According to the Department of Energy, the U.S. Strategic Petroleum Reserve now holds 340.3 million barrels of crude oil, down 8.9 million barrels from the previous reporting period.
The latest drawdown is the third-largest on record and leaves the reserve at its lowest level since 1983.
The decline is part of the administration's broader plan to release 172 million barrels from the reserve, a move designed to increase oil supplies in the marketplace and help ease pressure on fuel prices.
The timing comes as crude oil prices have weakened, a trend that could provide additional relief at the gas pump.
Because crude oil is the primary ingredient used to make gasoline, lower oil prices generally lead to lower fuel costs for consumers, although those savings often take several days or weeks to reach service stations.
The Strategic Petroleum Reserve was created after the oil crises of the 1970s and is intended to serve as the nation's emergency supply during major disruptions caused by war, natural disasters, or severe shortages.
Peak of 700M Barrels
At its peak, the SPR held more than 700 million barrels of crude oil.
Supporters of the drawdown argue that releasing oil from the reserve helps increase supply and reduces energy costs at a time when inflation remains a concern for American families.
By putting additional barrels onto the market, the government hopes to keep crude prices from rising sharply and prevent spikes in gasoline prices.
Critics, however, argue that the strategy comes at a cost.
With inventories now at their lowest level in more than 40 years, the United States has a smaller emergency cushion should a future geopolitical crisis or major supply disruption threaten global energy markets.
For the average American driver, the immediate concern is likely the price displayed at the local gas station.
Falling crude prices and additional oil supplies can help keep fuel costs lower than they otherwise might be.
Monday, for instance, crude oil prices fell sharply. Brent crude dropping to about $83 per barrel and U.S. benchmark West Texas Intermediate falling to about $80 per barrel, their lowest levels in months.
Meanwhile, AAA reported the national average price for a gallon of regular gasoline at $4.07, down for the third consecutive week.
The longer-term debate centers on whether those short-term benefits justify drawing down a reserve that was established to protect the country during times of national emergency.
Reuters contributed to this report.