US Oil Reserves See Largest Weekly Drop as Trump-Xi Push to Keep Hormuz Open

• US oil reserves fell by 8.6 million barrels, marking the largest weekly Strategic Petroleum Reserve drawdown on record
• Brent crude climbed above $108 as markets monitored shipping disruptions and supply risks around the Strait of Hormuz
• Trump and Xi discussed keeping the Strait of Hormuz open during talks in Beijing as global energy tensions remained elevated

US oil reserves recorded their biggest weekly decline on record this week. This comes as oil markets continued watching developments around the Strait of Hormuz. The Strategic Petroleum Reserve fell by 8.6 million barrels. It extended a seven-week decline in emergency stockpiles. At the same time, Brent crude oil traded above $108. Mostly because investors tracked shipping disruptions and geopolitical tensions linked to Iran and Hormuz.

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Strategic Petroleum Reserve Falls to Lowest Level Since 2024

The latest decline pushed total US oil reserves in the Strategic Petroleum Reserve down to roughly 384 million barrels. Reserve levels are now at their lowest point since late 2024.

US crude exports have also remained elevated in recent weeks. It stayed near 5.5 million barrels per day as global demand for American oil supplies continues.

In addition, Brent crude climbed above $108 during Friday trading as markets monitored supply risks tied to the Strait of Hormuz. This is one of the world’s most important oil shipping routes.

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Trump and Xi Discuss Strait of Hormuz During Beijing Talks

The White House said President Donald Trump and Chinese President Xi Jinping discussed the Strait of Hormuz during meetings in Beijing this week. According to the statement, both leaders agreed the route should remain open to support global energy flows. The White House said,

“President Xi also made clear China’s opposition to the militarisation of the strait and any effort to charge a toll for its use.”

The waterway has remained under close market scrutiny in recent weeks. This is after shipping disruptions and increased regional tensions involving Iran. Reports revealed that several vessels faced delays, inspections, or rerouting linked to tighter controls near the strait. Oil traders have been watching the situation closely because a large share of global crude shipments passes through the route.

The latest SPR drawdown has also caught attention. This is because the reserve was heavily used in previous years to stabilize fuel markets during inflation spikes and supply disruptions.

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