19 Mar '12, 1pm

Drumbeat: March 19, 2012

Regardless of what political motivation might be assigned to the SPR release it more important IMHO to understand how it may, or may not affect gasoline prices. See the chart (http://blog.heritage.org/wp-content/uploads/SPR.jpg ). From the day the president announced the SPR release on 23 June 2011 fuel prices rose slightly until the release began on 25 July. Prices began to drop and continued doing so through the end of the year. But the greatest decrease in price had already occurred in the 3 months preceding the release. In general the decline in prices followed the trend that was already established. It's useful to understand at what price the SPR oil was sold for: essentially for the market price oil was selling for prior to the release. The govt, by congressional law, cannot sell SPR oil for less than market price. SPR oil is benchemarked against Light La. Sweet. In ...

Full article: http://www.theoildrum.com/node/9042

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