• 3 minutes The World Economic Forum (WEF) - Davos 2022 Conference held this last week of May
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 1 day Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 3 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 3 days Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
On Rises Small Gasoline, Crude Draw

On Rises Small Gasoline, Crude Draw

WTI crude prices inched higher…

Could Iraq Dethrone Saudi Arabia As Largest Oil Producer?

Could Iraq Dethrone Saudi Arabia As Largest Oil Producer?

Iraq remains the largest underdeveloped…

U.S. Gasoline Prices Barely Budge After SPR Release Announcement

The national average U.S. gasoline price barely moved on the day after the United States announced on Tuesday a release of 50 million barrels of oil from the Strategic Petroleum Reserve intended to lower the highest gasoline prices in America in seven years.

On the following day, Wednesday, November 24, the national average was $3.398 per gallon of gasoline, down by less than one cent from the $3.403 average price on Tuesday, according to data from AAA. To compare, at this time last year, the average price of gasoline in the U.S. was $2.110 per gallon.

According to data from fuel-savings platform GasBuddy, the national average retail price of gasoline was $3.427 a gallon on Wednesday morning as of 8:40 a.m. EST, up by 1.0 ¢ from Tuesday’s average of $3.417. The national average price was close to the highest average on this day – $3.430 in 2012, GasBuddy’s data showed.

US President Joe Biden said on Tuesday that the Department of Energy would release 50 million barrels of oil from the SPR in a bid to lower high gasoline prices in a coordinated effort with other major oil-consuming nations.

The move underwhelmed the market, which was for the most part, already expecting an SPR release. Oil prices erased losses and jumped on Tuesday morning following the announcement. 

Related: OPEC+ Reacts To Biden, May Not Raise Oil Production In December

Most of the SPR release will take place within a period of several months, for the 32 million barrels of the 50 million, which will be released in the form of exchange. This crude oil will have to be returned in calendar years 2022, 2023, and 2024 at a premium, Warren Patterson, Head of Commodities Strategy at ING, notes.

The rally in oil prices this year, due to the rebound in demand, has led to the highest gasoline prices in America since 2014, and President Biden has been eager to have those prices lowered as high gasoline prices typically go with poor approval ratings for a sitting U.S. president.

After OPEC+ has continuously ignored calls from the U.S. Administration to pump more oil than planned, President Biden announced the SPR release, which analysts say will not have a direct immediate effect on gasoline prices.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • George Doolittle on November 27 2021 said:
    Starting to plunge in Oklahoma now.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News