US SPR depletion nears critical levels, amplifying oil price volatility risk

US crude inventories are declining and the Strategic Petroleum Reserve is approaching critical levels, reducing the buffer that previously mitigated oil price spikes following the US-Israel conflict with Iran. The OECD's coordinated release of 400 million barrels helped avoid a sharp price surge, but the diminishing reserve now leaves the market more exposed to supply shocks. This development signals increased upside risk to oil prices and heightened volatility.