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Gas prices up despite use of reserves
More than a month after the Obama administration said it would tap the country’s emergency oil reserve to try to combat supply disruptions in the Middle East, gas prices at the pump actually have risen 10 cents.
President Obama had hoped the move, coming at the onset of the summer driving season, would temper the loss of supplies due to the ongoing civil war in Libya. Working with international allies, the U.S. said on June 23 that it would release 30 million barrels of oil over 30 days, while other countries with strategic reserves agreed to release another 30 million, in staggered sales during July.
And prices at the pump did dip, at first, from a nationwide average of $3.61 down to $3.55, according to AAA. But by last week, they had rebounded and the price per gallon stood a dime higher than when the administration first made its decision.
“Although it helped initially to pull down prices it was probably too little,” AAA Mid-Atlantic spokesman John Townsend said, pointing out that the nation consumes as much as 20 million barrels of oil a day. “This is just a drop in the bucket.”
Prices may be about to see some relief, though for unwelcome reasons. Last week’s stock market drop and fears of the lingering sour economy have already begun to put downward pressure on oil, which analysts said will translate to lower pump prices — potentially trumping even the administration’s oil release.
The Obama Energy Department had resisted calls earlier this year to tap the Strategic Petroleum Reserve, but reversed course in June, saying its release of 30 million barrels from the nation’s emergency stockpile was intended to address an estimated loss of 1.5 million barrels a day of light sweet crude in Libya. The department said it has met that goal.
“We believe that the coordinated release of 60 million barrels of oil by partners around the globe, the majority of which will continue to enter the market over the coming month, has played an important role in addressing the oil supply disruption resulting from the situation in Libya,” Energy spokesman Damien LaVera said. “The United States will continue to closely monitor oil market conditions and is prepared to take further action if needed.”
http://www.washingtontimes.com/news/2011/aug/7/gas-prices-up-despite-use-of-reserves/
More than a month after the Obama administration said it would tap the country’s emergency oil reserve to try to combat supply disruptions in the Middle East, gas prices at the pump actually have risen 10 cents.
President Obama had hoped the move, coming at the onset of the summer driving season, would temper the loss of supplies due to the ongoing civil war in Libya. Working with international allies, the U.S. said on June 23 that it would release 30 million barrels of oil over 30 days, while other countries with strategic reserves agreed to release another 30 million, in staggered sales during July.
And prices at the pump did dip, at first, from a nationwide average of $3.61 down to $3.55, according to AAA. But by last week, they had rebounded and the price per gallon stood a dime higher than when the administration first made its decision.
“Although it helped initially to pull down prices it was probably too little,” AAA Mid-Atlantic spokesman John Townsend said, pointing out that the nation consumes as much as 20 million barrels of oil a day. “This is just a drop in the bucket.”
Prices may be about to see some relief, though for unwelcome reasons. Last week’s stock market drop and fears of the lingering sour economy have already begun to put downward pressure on oil, which analysts said will translate to lower pump prices — potentially trumping even the administration’s oil release.
The Obama Energy Department had resisted calls earlier this year to tap the Strategic Petroleum Reserve, but reversed course in June, saying its release of 30 million barrels from the nation’s emergency stockpile was intended to address an estimated loss of 1.5 million barrels a day of light sweet crude in Libya. The department said it has met that goal.
“We believe that the coordinated release of 60 million barrels of oil by partners around the globe, the majority of which will continue to enter the market over the coming month, has played an important role in addressing the oil supply disruption resulting from the situation in Libya,” Energy spokesman Damien LaVera said. “The United States will continue to closely monitor oil market conditions and is prepared to take further action if needed.”
http://www.washingtontimes.com/news/2011/aug/7/gas-prices-up-despite-use-of-reserves/
