North Texas Economist Doubtful Releasing 50 Million Barrels From Strategic Oil Reserve Will Lower Gas Prices Much
by Erin Jones | CBS 11
DALLAS (CBSDFW.COM) - If the cost of gas is burning a hole in your wallet, President Joe Biden says relief is on the way.
He's ordering 50 million barrels of oil be released from America's strategic reserve with the goal of bringing energy costs down.
However, some economists are doubtful this will have a significant impact at the pump.
"We consume 20 million barrels per day so basically he's talking about reducing 2 1/2 days worth of supply," economist Bernard Weinstein said.
Weinstein, recently retired from SMU's Maguire Energy Institute, said when it comes to significantly lower gas prices, especially around the holidays, don't get your hopes up.
"It will take weeks to get that oil into the refining and distribution system and interestingly right after his announcement today, the price of oil went up $1.75 a barrel - 2.5% - so the market is pretty much discounting this recent move," he said.
Weinstein said the good news is if you're worries about supply, there's plenty.
"My parents live about three hours away so I'm going to travel to see them, which they normally help me out whenever I come see them," said Caitlyn Williams who is gearing up for a long road trip.
As she fills up her tank, she said the news of potentially lower fuel prices is something she'd be thankful for.
"It's been a struggle for sure," she said.