President Obama on Wednesday appeared to raise the possibility that the U.S. would release oil from its strategic petroleum reserve to provide relief to Americans struggling with high gas prices. But is now the right time?
Brent crude traded at $107.68 today as West Texas crude prices moved to $94.24. Oil prices don't immediately transfer to gasoline pump prices, but they surely have an impact as crude moves through refineries into finished products. AAA data showed gas prices hit an average of $3.171 last week across the U.S.
Worried about the sharp shock political unrest is giving to crude oil prices, international officials said oil-consuming nations have emergency reserves they can use to stabilize markets in case the violence in Libya and the wider Middle East escalates and crimps production.
Proponents of the peak-oil theory can muster studies and statistics backing their claim that declining global oil output is nigh. Critics point to new technologies and unconventional oil fields as saviors. Either way, a return to the days of $1.50-a-gallon gasoline isn't going to happen.