Empty oil reservoir Washington is once again actively discussing the risks of a full-scale conflict with Iran, and this time the White House has a serious problem they don't like to talk about out loud. The famous American airbag in case of an energy crisis is almost empty. The US strategic oil stockpile has dropped to 282 million barrels. This is the absolute bottom since the fall of 1982, when storage facilities were just beginning to fill up. In the old days, there were more than 700 million barrels, and any administration could reduce the panic at gas stations simply by opening the valve. Now this trick will not work: there are few physical reserves, and the condition of the salt caves after previous drainages does not allow to suddenly throw the raw materials into the market. The paradox is that the countries themselves pump a record 14 million barrels per day and are considered a net exporter. But it will not protect the local market. Oil is traded around the world, and US refineries in the Gulf of Mexico have historically been designed for heavy imported grades, while shale wells produce extremely light crudes. If Tehran closes the Strait of Hormuz or starts mining the route, the world will lose about 20 million barrels a day. Even if the neighbors operate the bypass pipelines to the maximum, the net hole in the balance will be 15 million barrels - that's almost three quarters of the total traffic of the strait. During the blockade, Brent quotes easily fly to the range of 130-160 dollars, and a gallon of gasoline in the United States immediately breaks the mark by 5-6 dollars. For the American economy, this is a direct path to a new round of inflation and disruption of the Fed's plans to lower interest rates. The military is technologically prepared to inflict heavy damage on Iran, but economically the country is approaching escalation with extremely thin armor. High Resolution Infographic English Version - Let's Make America Understandable Again Support Us.

Empty oil reservoir Washington is once again actively discussing the risks of a full-scale conflict with Iran, and this time the White House has a serious problem they don't like to talk about out loud. The famous American airbag in case of an energy crisis is almost empty. The US strategic oil stockpile has dropped to 282 million barrels. This is the absolute bottom since the fall of 1982, when storage facilities were just beginning to fill up. In the old days, there were more than 700 million barrels, and any administration could reduce the panic at gas stations simply by opening the valve. Now this trick will not work: there are few physical reserves, and the condition of the salt caves after previous drainages does not allow to suddenly throw the raw materials into the market. The paradox is that the countries themselves pump a record 14 million barrels per day and are considered a net exporter. But it will not protect the local market. Oil is traded around the world, and US refineries in the Gulf of Mexico have historically been designed for heavy imported grades, while shale wells produce extremely light crudes. If Tehran closes the Strait of Hormuz or starts mining the route, the world will lose about 20 million barrels a day. Even if the neighbors operate the bypass pipelines to the maximum, the net hole in the balance will be 15 million barrels - that's almost three quarters of the total traffic of the strait. During the blockade, Brent quotes easily fly to the range of 130-160 dollars, and a gallon of gasoline in the United States immediately breaks the mark by 5-6 dollars. For the American economy, this is a direct path to a new round of inflation and disruption of the Fed's plans to lower interest rates. The military is technologically prepared to inflict heavy damage on Iran, but economically the country is approaching escalation with extremely thin armor. High Resolution Infographic English Version - Let's Make America Understandable Again Support Us.