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NormalChannel t1_j0jus6g wrote

I hope gas is not this cheap because it's coming from the National Reserves.

Edit: It's not. The Strategic Reserves contains crude - not refined - oil, so it would need to be processed, which would require foreign/extra refineries to do so in sufficient time.

Addendum (from u/Dr0110111001101111) - It’s not about getting it refined in time. It’s that oil is traded on an international market. So it doesn’t matter who buys our oil. It just matters that is being added to the global supply, which drives prices down globally. We can’t do much to influence gas prices domestically without those actions having similar impacts globally.

The benefit of this is that we can sell it to the highest bidder even if they are purchasing it overseas, and it will still benefit us at the pump locally

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kmelby33 t1_j0lh1cg wrote

It's not.

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NormalChannel t1_j0m54oj wrote

This may state otherwise. This was in October and was intended to have an effect around now, but of course, the President can't just do one thing and-BAM-prices stablize. Markets and Production Cycles etc.

https://www.npr.org/2022/10/18/1129788081/biden-to-release-another-15m-barrels-from-strategic-reserve

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kmelby33 t1_j0m5xt0 wrote

Lol. That's a tiny amount compared to what we consume per day. Gas is falling because of increased supply and lower demand worldwide.

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NormalChannel t1_j0m8f5b wrote

Yeah, you're right.

Though what is lowering demand? Could a part of it be China's zero covid policy?

Because it would be interesting to know.

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Dr0110111001101111 t1_j0lzd6d wrote

There’s no national reserve of gasoline. It’s crude oil and it is sold to the highest bidder on an international market.

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NormalChannel t1_j0m4il4 wrote

Well, there's this - https://en.m.wikipedia.org/wiki/Strategic_Petroleum_Reserve_(United_States)

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Dr0110111001101111 t1_j0m57yx wrote

Yes, that is oil, not gasoline. They can’t just sell that to your local gas station.

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NormalChannel t1_j0m7xl3 wrote

True. I stand corrected. I'll edit my parent post

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Dr0110111001101111 t1_j0ma47m wrote

Re: your edit- It’s not about getting it refined in time. It’s that oil is traded on an international market. So it doesn’t matter who buys our oil. It just matters that is being added to the global supply, which drives prices down globally. We can’t do much to influence gas prices domestically without those actions having similar impacts globally.

The benefit of this is that we can sell it to the highest bidder even if they are purchasing it overseas, and it will still benefit us at the pump locally

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