U.S. Taps Oil Reserves for Relief at the Pump

The United States is part of a larger international group that is tapping 60 million barrels of oil globally, with about half of that coming from U.S. strategic oil reserves.

The release of oil is to offset a disruption in supplies due to the current conflict in Libya and other oil-producing countries.

The price of oil is dropping on Wall Street, but expect the price at the pump — already on the decline — to continue to fall. The government hopes this will be a shot in the arm for consumers and businesses, but how much of a direct impact it makes on prices remains unclear.

The national average price of a gallon of regular unleaded gas is $3.61 today, according to AAA. That’s down 7 cents from last week and 21 cents from a month ago. Gas was $2.74 a gallon last year at this time.

Global Oil Reserves Tapped in Effort to Cut Cost at Pump (New York Times)

By David Thomas | June 23, 2011 | Comments (7)
Tags: In The News

Comments 

Amuro Ray

False hope, D.T. More like, well, IT IS, a political move rather than having a solution for a problem.

1. The administration has said numerous time that there isn't a supply problem. In fact, there is surplus in our gasoline supply just last month or so;
2. Mutiple economists/financial analysts have stated that US doesn't have a gasoline supply problem;
3. Even OPEC don't see a supply problem warrant enough for increase oil production;
4. Libya is NOT supplying the majority of crude for our gasoline production;
5. Oil is a world commodity - releasing internal supply w/i US will not affect world gasoline prices (although it gives the false sense that this will).
6. Unless Iran, Saudi Arabia, and Venezuela stopped sending us oil, then THAT's real trouble. Interestingly, 2 of those 3 are our enemies...

The strategy is to try to give a false impression to the stock market, thus influencing oil prices through stock. This is a really short term strategy. Prices are falling now due to the excessive supply we are already having, so if the gov't decides NOT to release the reserve, oil prices will STILL fall (until a point).

Not only is the administration flip-flopping on its energy strategy (to get rid of our oil dependence, and lowering gas prices will definitely help that), the strategy that the administration is using is looking more and more like the previous one...

What's scary though, is that if you kinda look into the future, it's more likely that oil prices will jump across the board, as US is distancing itself from number of Middle East regime that have been US allies and have been sending us oil, yet no one knows what the oppositions of these regimes are really supported by, and they seem to be groups that are non-US friendly.

Body Shop owner

r u trying to suggest that Saudi Arabia is an enemy and that its people who live in the us are? come on AR stay on topic bro

cody

no, he's referring to iran and venezuela. neither country's leaders are big fans of the u.s.

George

Saudi Arabia will soon be on that list.
They got signed up for a Ponzi scheme.
They only took USD $ for oil, then were instructed to purchase US debt with those dollars.
What do they get in return? Worthless paper it seems like.

The US will then open its vast reserves in Alaska, Dakotas/Montana, Colorado/Utah.

Todd

Obama has made things worse. 7.5 million jobs gone and never coming back under him. Gas was $1.59 at my corner station when I voted for him. A lot changes in two years!

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