Monday, July 18, 2011

Oil Prices Fail to Cooperate With President Obama’s Political Objective

On June 23, 2010, President Obama announced that the U.S. government planned to release 30 million barrels of oil from the Strategic Petroleum Reserve, about 5% 0f the total.  The move was intended to offset the loss of global supply from Libya.

On the announcement, the price of oil futures dropped $4.02 a barrel to $91.30 by 1:45 PM EDT.  On July 15, the price exceeded $97 a barrel.  The benefit to American consumers was short-lived.  Obama will get no political credit for this ostensibly political move.

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