NEW ORLEANS (WGNO) — One million barrels of oil a day will be released every day for the next six months from the nation’s strategic reserves.
Those reserves are in Louisiana and Texas.
They’ve stored oil since the 1970s when gas prices were sky high for that time.
The question is will releasing that much oil now bring down gas prices?
“The price is astronomical,” said Mat Allen. He’s from Tyler, Texas and was traveling to New Orleans. “When you’re spending over a hundred dollars every time you fill up your tank it’s crazy.”
Since the war on Ukraine prices has skyrocketed.
AAA.com reports the national price of gas is $4.23. Compare that to a month ago when it was $3.61.
“Consumers filling up their gas tank are feeling the effects of the high prices,” said Dr. Kay McLennan. She’s a professor at Tulane University.
She says the impacts are already being felt since Biden’s announcement.
“The price of oil per barrel at yesterday’s close was about $107 a barrel and now it’s down about $102 a barrel and possibly falling even further,” said Dr. McLennan.
So what could that mean at the pumps?
“The general expectation is that there will be a decrease at the pump a small decrease,” said Dr. McLennan. “It’s also mitigating future increases.”
This is the second time President Biden has tapped into the reserves because of the war in Ukraine.
He authorized the release of 60 million barrels earlier this month.