Hmm, looks like they may tap the oil reserve here. This won't drop gas prices because it is the refiners that are getting squeezed here. They can't convert the oil into gas fast enough. It may be a good gesture just to show that something is being done at least.
Also it will probably drop crude prices because it seems like one of those jawbone style measures. Tap a few million barrels and talk about tapping more to let some air out of crude prices. And this certainly won't be a reason to tap the reserve:
"Skyrocketing gas prices have tipped consumers upside down this summer and to protect our economy, the president should act immediately to tap the SPR," Sen. Chuck Schumer of New York said.
Um, we tap the thing for an emergency. Having to pay $3 a gallon really isn't an emergency it is a temporary inconvenience. What Schumer should be calling for is a federal subsidy of some kind to companies that build new gas refineries. Or maybe relaxing the environmental requirements to get new refineries built. Or maybe even providing some sort of incentive to build new refineries in Mexico.
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