Bloomberg Surveillance · Thursday, July 30, 2026
The rapid drawdown of the Strategic Petroleum Reserve (SPR) is a significant factor that could change the dynamics of the WTI market around September. There are technical questions about the SPR's capacity and the long-term implications of these drawdowns, with some suggesting the DOE has not fully addressed the SPR's bottom.
“And then of course I said, you're drawing down the spr very rapidly as well.”
“Well, that's depending on the rate that the weekly it's being pulled down. But the refiners now find it a great deal because they're basically taking physical barrels, they're not paying for them, and they owe physical barrels in the future, and as you pay back more barrels, but in the future, which is a much lower something of a lower price.”
“So I'm not sure that you know what he says about the SPR is really definitive. Frankly, we just don't know when we're going to have to stop downloading it.”