U.S., allies to release 60 million barrels from oil reserves

Who are the 'speculators' and why do they have so much power? If all that needed to happen was to use some oil from the reserves to lower prices at the pump, why did it take so long for the administration to do it? I know the President is a thinker and a strategist, but we have needed relief at the pump for months. I hope this works and we begin to see a relief soon. Lower gas prices alone cold have a direct impact on the economy.

The United States and other industrial nations said Thursday that they will release 60 million barrels of crude oil from strategic stockpiles in aneffort to reduce the price of fuel and to jolt the stalling economic recovery.

The United States will sell 30 million barrels from its Strategic Petroleum Reserve over the next 30 days, the largest release ever from the nation’s emergency energy stockpile. The International Energy Agency said its other members will draw down an equal amount.

The announcement led to a debate in Congress about the appropriate use of the strategic reserve. Some analysts noted that the drawdown would amount to less than what the world consumes in a single day and that its effect would be fleeting.

If successful, though, the release could lower oil prices over the summer and signal that governments stand ready to intervene and limit petroleum price increases. The announcement drove down the cost of the benchmark West Texas Intermediate-grade crude oil by nearly 5 percent, to $91.02 a barrel, a four-month low. The share prices of oil companies also tumbled.

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