Millions of Americans hit the road for Thanksgiving this week, and those who drive are paying more at the gas pump.
On Tuesday, President Biden announced efforts to make prices a little more affordable. The Department of Energy will release 50 million barrels of oil from the strategic oil reserve.
With the changes announced, AAA says prices will start to drop immediately, but the full impact won’t be felt for weeks. AAA explains that a fundamental problem of supply and demand is what drove prices up.
“OPEC (Organization of Petroleum Exporting Countries) voluntarily withheld some of their petroleum products in an attempt to drive up prices and they did it, ”AAA spokesperson Clay Ingram said.
President Biden said releasing oil from the strategic oil reserve should be a solution to high gas prices.
“Today we are launching a major effort to moderate the price of oil, an effort that will cover the entire world with its reach and eventually reach your local gas station God willing,” President Biden said.
But the president’s actions will not solve the problem of high gas prices overnight. AAA says drivers will slowly notice a difference at the pump.
“We are already in a bit of a downward trend. We’ll probably hit a small plateau around Thanksgiving, but once we get past that we should see prices continue to drop, ”Ingram said.
AAA says drivers will likely see the full effects of this release of oil reserves around the start of the new year.
Biden said the United States was working with other countries, including China, India, Japan, South Korea and the United Kingdom, to free up oil reserves to lower prices in the whole world.
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