Biden announces release from emergency oil reserves in hopes of bringing down prices at the pump

KBTX First News at Four(Recurring)
Published: Oct. 19, 2022 at 10:19 PM CDT
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BRYAN, Texas (KBTX) - President Biden laid out a plan he believes will help bring down gas prices, but according to an expert from AAA, drivers shouldn’t get their hopes up just yet.

Biden announced the release of 15 million barrels of oil from the strategic petroleum reserve. The move comes right ahead of midterms--and weeks after the oil producing nations that make up OPEC Plus announced a major production cut.

When talking about what’s going on with the war in Ukraine, “with Russian oil being either sanctioned or not being purchased by countries or companies, it’s really created a tighter supply, specifically affecting a number of countries including us right here in the U.S. So, when OPEC, for example, announced its cuts as we go into later this year, that certainly moved markets higher and therefore we saw price increases,” explained AAA Texas spokesperson Joshua Zuber.

Zuber says the pricing impact from the president’s actions remains uncertain, but he believes that as the war continues in Ukraine, the oil and gas market is going to remain volatile.

“We all share the frustration of higher gas prices, and that’s likely going to continue as we move through the rest of this year and perhaps even into next year.”

The White House has said the president may authorize the sale of more oil from the petroleum reserves this winter if it’s needed.

Watch the full interview in the player above.