The US is draining its oil reserves at a rapid pace: The Strategic Petroleum Reserve (SPR) dropped -7.12 million barrels last week, the largest weekly drawdown since October 2022. This marks the 5th consecutive weekly decline, the longest streak since 2023. Over this period, US oil reserves in the SPR have fallen -17 million barrels, to 398 million, the lowest since April 2025. This comes as total US oil and fuel exports surpassed 14 million barrels per day for the first time in history, as overseas buyers scramble to replace lost Middle Eastern supply. Furthermore, commercial crude stocks declined -6.23 million barrels last week, the largest weekly decline since early February. Gasoline and distillate stocks also fell sharply, by -6.08 million barrels and -4.49 million barrels, respectively, pushing total gasoline supplies to their lowest seasonal level since 2014. Global demand for US oil has never been higher.(The Kobeissi Letter)