Expert says release of 15 million oil barrels from reserves won't change gas prices much
BOSTON - From your hand at the pump to the mouth of the president, gas prices are on everyone's mind. President Joe Biden announced 15 million barrels from the Strategic Petroleum Reserves would be released in December.
Wednesday's announcement completes the 180-million-barrel commitment President Biden made back in March when the war in Ukraine started threatening international oil imports.
"I do not think we are going to see much easing any more than we have already seen," said Dr. Brian Bethune, an economics professor at Boston College.
Bethune said Wednesday's 15-million-barrel recommitment is unlikely to provide noticeable relief.
"That in itself is not a significant change," said Bethune.
Dr. Jay Zagorsky is a professor at Boston University's Questrom School of Business. Zagorsky said the United States uses about 20 million barrels of oil a day. President Biden's 15 million commitment will be spread over 30 days, averaging about half a million barrels a day.
"It adds a little bit but not very much," said Dr. Zagorsky.
Political analysts point to the timing of this announcement. The mid-terms are less than three weeks away. Early voting in many states, including Massachusetts, begins this weekend.
The latest CBS News Battleground Tracker poll shows the economy is now the number one issue driving voters to the polls, passing abortion and the debate over reproductive rights the weeks prior.
CBS News polling showed 63% of registered voters feel the economy is "getting worse." Compare that to the 15% who believe it is "getting better" and the 20% who said it is "staying the same."
That same group of voters were asked about gas prices. Sixty-three percent said gas prices were "going up" in their area compared to 13% who said they were "going down" and 18% said they were "staying the same."
A second part of President Biden's announcement laid out how the US would refill the reserve, currently sitting about half empty with just over 400 million barrels stored.
Biden said the US would start buying back fuel when prices dropped to around $72 a barrel. Dr. Zagorsky said that could result in a $3-to-4 billion profit for the United States.