Impact of US Oil Reserve Release Unclear

Impact of US Oil Reserve Release UnclearImpact of US Oil Reserve Release Unclear

American drivers are unlikely to see prices at the pump fall, if crude is released from the Strategic Petroleum Reserve because US oil production already is sky high, analysts said. The potential release, ahead of the US midterm elections in November, would aim to bring relief to customers who have seen gasoline jump 50 cents a gallon in the past year, Reuters reported. Even if the release temporarily sends futures contracts lower, there is no guarantee that pump prices would follow and remain down, according to analysts and market participants. “It is unlikely to have any measurable impact on the diesel or gasoline market in the US,” said Zachary Rogers, refining and oil products analyst at Wood Mackenzie in Houston.  “There is already enough crude to run at max rates,” he added. The reserve, which contains about 660 million barrels of crude, can be tapped in event of an emergency disruption to domestic supply and has been used to avoid price spikes in case of past disruptions.

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