CUSHING, Okla. — The sprawling oil storage tanks in central Oklahoma, known as the largest private oil storage site in the United States, are holding near-record low volumes after six months of conflict between the United States and Iran. Once filled with millions of barrels, these tanks now contain just enough oil to maintain operational systems.

The drawdown reflects broader efforts by companies and governments to manage energy supplies amid geopolitical tensions. As prices surged earlier in the year, operators tapped into stored reserves to meet demand. However, the current low inventories are raising concerns about the market’s ability to absorb future shocks if the conflict escalates or drags on.

Cushing’s role in the U.S. energy infrastructure dates back over a century. The town emerged as an early oil boomtown with the drilling of its first commercial well in 1912. Over time, its central location and extensive pipeline network connecting oil fields in Canada and the U.S. interior to refineries across the Midwest and Texas established it as a critical hub for oil storage and trading. The West Texas Intermediate oil contract, a key benchmark price in the United States, was launched there in 1983.

Currently, storage tanks in the Cushing area hold approximately 22 million barrels, just above minimum operating levels, according to the Energy Information Administration. Operators caution that removing significantly more oil could damage critical infrastructure such as floating steel roofs and blending mixers. Meanwhile, the U.S. Strategic Petroleum Reserve, stored primarily in underground salt caverns in Texas and Louisiana, has been drawn down to its lowest level since 1982. Experts warn that further large withdrawals could risk structural damage to these facilities.

Energy analysts emphasize that while oil storage capacity in the U.S. remains ample, the key challenge is dwindling inventories rather than physical storage space. Market dynamics also discourage private companies from holding large oil stockpiles, as current prices are higher than traders expect them to be in the near future.

Internationally, oil producers in the Persian Gulf, including Saudi Arabia, are seeking to build storage facilities overseas, away from vulnerable maritime chokepoints like the Strait of Hormuz. Amos Hochstein, senior adviser on energy and foreign policy for the Biden administration, noted that producers need to invest in storage beyond their borders to reduce risk.

Despite the low storage levels, oil prices remain below the peaks seen early in the conflict. However, analysts warn that prolonged tensions could strain global supply chains further, especially given constraints in refining capacity. The ongoing war between the United States and Iran continues to inject uncertainty into energy markets worldwide.