US oil stockpiles are falling to a 40-year low and global crude prices are rising, according to market expert Larry McDonald.

The oil stock crash reveals growing energy security concerns and increases the US’s import dependence, making it more vulnerable to supply disruptions and price volatility.

The US government’s Strategist Petroleum Reserve (SPR) is being used to hedge against rising oil prices, but the reserve is less than half of its 2010 highs.