Experts are skeptical about the impact, with one calling the move 'political.'
at the pump ahead of Thanksgiving travel.
. Historically, the U.S. has tapped into this reserve in response to immediate disruptions in oil supply, like hurricanes. A senior administration official, citing a low global supply of oil that is contributing to driving up fuel costs, said the decision was made to ease costs on American consumers as pressures between demand and the easing of the pandemic create unique conditions.
As the global economy recovers from the COVID-19 shock, oil demand is surging and more travelers are hitting the road and taking flights, causing demand for gas -- and prices -- to rise at a rapid clip. At the same time, the supply and production of oil has not kept up with increased demand. OPEC+, a conglomerate of the world’s biggest oil producers, has resisted repeated calls by the White House to boost global production.
"The fact is the price of oil was already dropping prior to this announcement and many suggest in anticipation of the announcement," Biden said during his Tuesday remarks."The price of gasoline in the wholesale market has fallen by about 10% over the last few weeks. But the price at the pump hasn't budged a penny. In other words, gas supply companies are paying less and making a lot more. And they do not seem to be passing that on to the consumers at the pump.
This relief Americans will see as a result of this announcement, however, will likely be"underwhelming," according to DeHaan, and not a long-term solution.
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