STRATEGIC RESERVE RELEASE - An energy analyst for the Federal Reserve Bank of Dallas says the largest ever release from the US's emergency oil reserves in Texas and Louisiana will buy some time to increase domestic production. Garret Golding explains the White House aims to hold down gas prices by flooding the market with a million barrels of oil per day for six months.
“It's going to take several months for US production to ramp up, if it can ramp up at all,” Golding explained. “So this decision is partly to bridge that gap really over the next few months before we start to see those volumes out of the US start to accelerate."
New sales from the Strategic Petroleum Reserve are not expected to hit the market until May.