• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 2 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 18 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 2 days Indonesia Stands Up to China. Will Japan Help?
  • 1 day US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 15 mins Let’s take a Historical walk around the Rig
  • 17 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 hour Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 hours Trump has changed into a World Leader
  • 1 day Might be Time for NG Producers to Find New Career
  • 2 days Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 2 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 3 days Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
Alt Text

Predicting The Bounce In Crude Oil

Crude prices have fallen significantly…

Alt Text

Why Did Haftar Turn Libya’s Oil Off?

General Haftar is in the…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Analysts: SPR Release Won’t Lower Gasoline Prices

Even if the U.S. Administration decides to release crude oil from the Strategic Petroleum Reserve (SPR), American drivers are unlikely to see gasoline prices coming down, because U.S. refiners already have enough oil to run at maximum rates, and much of the oil products that would be produced could be exported, analysts briefed by Reuters say.

Last month, reports emerged that the Trump Administration was considering tapping into the SPR to try to reduce gas prices before the mid-term elections in November. Options being reviewed range from a test sale of 5 million barrels to the release of 30 million barrels from the SPR, Bloomberg reported in July, citing people familiar with the deliberations.

As of August 3, the SPR inventory stood at 660 million barrels of oil, including 254.6 million barrels of sweet and 405.4 million barrels of sour crude.

Various analysts who have spoken to Reuters think that even if a potential SPR release manages to bring crude oil prices down temporarily, this would not automatically mean that prices at the pump would also drop.

“It’s unlikely to have any measurable impact on the diesel or gasoline market in the United States,” Zachary Rogers, refining and oil products analyst at Wood Mackenzie in Houston, told Reuters. “There’s already enough crude to run at max rates,” Rogers noted.

According to Kenneth Medlock, a fellow in Energy and Resource Economics at Rice University, U.S. demand is not as high as to take in all the refined oil products. Related: The Shale Boom That Will Never Happen

And if an SPR release ended up as exports outside the U.S., this would lead to “a very negative reaction” among American taxpayers, Barry Worthington, executive director of the United States Energy Association, told Reuters.

For the week ended August 6, the average U.S. regular gasoline price was $2.852 a gallon, up by $0.474 from a year ago, EIA data shows. In the early days of August, the national gas price average was $2.87/gallon, which is the most expensive gas price seen in August since 2014, AAA says.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment
  • Tom on August 10 2018 said:
    So, if the Trump Administration really wanted to temper gasoline prices, they could easily allow more competition in the fuel market by allowing year-round Sales of E-15 Ethanol Blended Fuel.

    Ethanol has been priced 65 to 75 cents per gallon less than gasoline for most of the year. The Ethanol Lobby has been pleading with the Administration for months, to allow year-round E-15 sales. This action would help to lower gasoline prices and make up some of the lost ethanol demand caused by all of the EPA’s Refinery RFS Waivers.

    What's holding the Administration back?
  • oilracle on August 11 2018 said:
    First of all, the SPR should be emptied for maintenance and now for profit, - not to lower the prices!

    Second, ethanol is cheaper because it has less energy.
    "E-15 Ethanol Blended Fuel" is a crime against nature (see the latest EPA report)

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play