How the Strategic Petroleum Reserve Affects Gas Prices

COMMENTARY Environment

How the Strategic Petroleum Reserve Affects Gas Prices

Mar 16th, 2012 1 min read
COMMENTARY BY
David W. Kreutzer, Ph.D.

Senior Research Fellow, Labor Markets and Trade

David Kreutzer researches and writes about labor markets and trade.

What happened to gasoline prices the last time Obama invoked a coordinated release of the Strategic Petroleum Reserve?

Before Obama announces the SPR release, the price is already declining. He announces, and the price continues to decline; then, it levels off and starts to go back up. Immediately upon the start of the SPR release, nothing changes, and the price continues to rise. The price declines; then it rises again. Immediately upon the cessation of the SPR release, nothing happens, and the price continues to rise. Then, without further release from the SPR, it goes back down. See how Obama’s quick action saved us from price increases price decreases, I mean price volatility, no wait… Whatever, it wasn’t as bad as the drilling moratorium.

See also: Releasing Oil from SPR Still Not a Good Idea

This piece originally appeared in The Daily Signal