Thursday, June 23, 2011

Obama Release 30 Million Barrels from US Oil Reserves

Obama releasing 30 million barrels of oil from our Strategic Petroleum Reserve is reminiscent of Bill Clinton stunt in the 90's. White House officials are unable to predict how the release will affect prices at the pumps, but I can give a ball-park guess. During the Clinton Administration, Bill release 30 million barrels of oil and it brought the price at the gas pump down by one cent. There is a likely possibility that Obama's decision will do the same thing too. It would been easier to do what Bush did in 2008. Bush sign an executive order to rescind off shore drilling. That brought down the price of gas dramatically. Obama just gave the American people a teaser.

(Yahoo) WASHINGTON (AP) -- Wary of a new surge in gas prices, the Obama administration said Thursday it is selling off 30 million barrels of oil from the country's emergency reserves as part of a broader international response to lost oil supplies caused by turmoil in the Middle East and North Africa, particularly Libya.

The release from the U.S. Strategic Petroleum Reserve will be the largest ever, amounting to half of a 60 million-barrel international infusion of oil planned for the world market over the next month.

Even so, the 30 million barrels to be sold by the United States represents less than two days' worth of domestic oil consumption and about three days of oil imports.

White House officials would not predict how the release will affect prices at the pump, although the move is intended to increase U.S. supplies during the peak summer driving season.