Gas price decrease to be slow after Biden’s release of 50 million barrels of oil

Consumer Watch

RALEIGH, N.C. (WNCN) – President Joe Biden is authorizing the release of 50 million barrels of oil from the strategic petroleum reserve in order to help lower gas prices in the coming weeks.

Here in the Triangle, drivers are waiting to see a significant drop in gas prices, but it will take a while for cheaper gas to be reflected at the pump.

The whole thing revolves around logistics.

First, the oil has to be released, then it must be refined and work its way into the system.

That means it will take time before you see a dramatic decrease at the pumps.

For many drivers, the relief can’t come soon enough

“It’s hurting, it’s hurting,” said frustrated driver Jewel Silas.

“It’s ridiculous,” said driver Flynn Edmiston. “I don’t understand the dynamics of it.”

Here’s how releasing strategic reserves will work:

Industry analysts say we’ll see a quick drop by a few cents at the pump almost immediately but the larger impact won’t be felt for at least two weeks.

The longer you wait to fill up, the better it will be for your wallet.

“Don’t fill up early,” said GasBuddy chief petroleum analyst Patrick DeHaan. “Fill up as late as you can because prices will continue to decline.”

Because we’re in a global economy, for this petroleum release to work, other countries like China, India, Korea and the UK must also join in adding their petroleum reserves to the world supply. It’s hoped that will cool off prices.

“It’ll be good if it’s effective and done quickly as possible,” said Silas. “With the Christmas season rolling around, we’re not hit with higher gas prices around the holiday.”

Right now, GasBuddy says the national average for regular gas is about $3.35 a gallon, almost a dollar and a quarter higher than last year at this time.

“It seems like every holiday the price goes up because of the demand, and now it seems like it’s gone crazy, said Edmiston.

Industry analysts believe once gas prices start dropping that trend should continue until at least until mid-December, and possibly longer than that.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

LKQD Outstream

Trending Stories