Will Release From Strategic Oil Reserve Mean Lower Gas Prices?
Utica, NY (WIBX) – The government will be releasing 30-million barrels of oil from the Strategic Petroleum Reserve over the next 30 days.
It’s part of an international effort to limit the effects of a disruption of oil supplies from Libya.
What will it mean for prices at the pump?
AAA’s Ed Welsh says it should mean a drop in gas prices, but that remains to be seen.
Welsh says oil has only been released from the Strategic Reserve twice since 1977 when it was established.
Once was in 1991 for Operation Desert Storm and the other time was in 2003 after Hurricane Katrina.
Meanwhile, the average price for a gallon of gas in the Utica-Rome market is $3.83 cents, down four cents from last week and 17 cents from a month ago.
It’s still 97 cents a gallon more than we were paying last year at this time.