Oil prices bounded higher despite President Biden's plan to tap 50 million barrels from the Strategic Petroleum Reserves in tandem with other countries.
|USO||UNITED STATES OIL FUND L.P.||48.29||+1.25||+2.66%|
|BNO||UNITED STS BRENT OIL FD LP UNIT||18.79||+0.42||+2.29%|
West Texas Intermediate crude hit the $78 per barrel level, reversing earlier losses, while the global benchmark Brent, hit $82 per barrel midday.
Gas prices, which are averaging $3.40 per gallon nationally, held at current levels.
"While that might seem like a good idea history has proven that the release will only have a short-term impact on prices and is an open declaration of an oil war with the OPEC Plus cartel. Oil reserves are meant for emergencies like war, hurricanes, and major oil supply disruptions" said Phil Flynn, market analyst at the Price Futures Group and FOX Business contributor.
|UGA||UNITED STATES GASOLINE FUND LP PARTNERSHIP UNITS||36.34||+0.59||+1.65%|
U.S. and global prices have climbed over 50% this year, setting up Americans for a costly winter heating season with prices more than doubling in some cases for fuel, including propane, according to the Energy Information Agency.
On Tuesday, U.S. Energy Secretary Jennifer Granholm reiterated the need for the move.
"This action underscores the president’s commitment to using the tools available to bring down costs for working families and to continue our economic recovery," she said in a statement.
Even so, energy experts, along with lawmakers, expressed skepticism the move will be enough to solve America's energy crisis.
"On the surface- the WH announcement and details just leave me disappointed- go big or go home, and I think the WH struck out. Oil trading slightly higher, make no mistake- if OPEC comes out shortly and has a strong statement, we'll be back to $80 in no time" said Patrick De Haan of GasBuddy.
House Minority Leader Kevin McCarthy, R-Calif., also weighed in.
"President Biden's decision to tap America's strategic reserves—which will release just 3 days’ worth of oil onto the market—is not about a real solution to our energy crisis" he tweeted.