Last month, the United States Strategic Petroleum Reserve (SPR) fell to its lowest level since 1983 as renewed tensions between the United States and Iran raised concerns about the stability of global oil supplies and prices.US President Donald Trump acknowledged to reporters on Wednesday that anytime the US strikes Iran, oil prices jump.Recommended Stories list of 4 itemsend of listAnd they did. Brent futures topped their highest level since June 19 on Wednesday. Brent futures settled at $78.02 a barrel, up 5.2 percent from the day before.Meanwhile, the SPR fell by 6.2 million barrels in the week ending July 3 to 319.5 million barrels, according to data from the Department of Energy, marking its lowest level since the Reagan administration. It has a storage capacity of 713.5 million barrels, a level it was last close to around the 2010s.Today, the US produces more oil than any country in the world and is a net exporter of petroleum products. Roughly 60 percent of the crude oil refined in the US comes from domestic production. The remaining 40 percent is imported, of which roughly 60 percent comes from Canada and another 7 percent from Mexico. Only about 7 percent of the crude oil consumed in the country travels through the Strait of Hormuz.So why do tensions with Iran still affect prices at US petrol pumps?Crude oil isn’t priced based on where it was produced but on global benchmark prices that reflect worldwide supply and d …
