The U.S. Department of Energy announced today 30 million barrels of oil would be released from the Strategic Petroleum Reserve, as part of an international effort to release 60 million additional barrels worldwide to combat high energy prices caused by the uprising in Libya, among many other factors.
The announcement Thursday morning drove the cost per barrel of oil down 4 percent to $90.75 per barrel, according to CNNMoney. The price per barrel of oil is tied to the consumer cost of many items, particularly gasoline. The price per gallon of unleaded gasoline in Connecticut has dropped from a high of near $4.30 to $3.90 over the past two months as the cost per barrel of oil has dropped from around $115.
“At a time when Connecticut families are paying the second highest prices in the country for gas, I want to commend the (Obama) Administration for taking this step to help combat high gas prices and help stabilize the oil markets that have been affected by the unrest in Libya,” said Congressman John Larson, D-CT, in a press release following the Energy Department announcement.
The 30 million barrel release comes as the U.S. works with the International Energy Agency to stabilize petroleum prices across the globe. In connection with the U.S. release, other countries are releasing another 30 million barrels combined from their reserves.
The Strategic Petroleum Reserve, where the U.S. stores its barrels of oil, currently sits at a historic high of 727 million barrels.
The Department of Energy and the IEA said Thursday the release is directly tied to the unrest in Libya, where dissidents are trying to unseat longtime leader Muammar Gaddafi. The situation has caused the loss of roughly 1.5 million barrels of oil per day.
Worldwide consumption of oil hovers around 90 million barrels per day. Usage, particularly in the U.S., picks up in July and August.
“We are taking this action in response to the ongoing loss of crude oil due to supply disruptions in Libya and other countries and their impact on the global economic recovery,” said Energy Secretary Steven Chu in a press release. “As we move forward, we will continue to monitor the situation and stand ready to take additional steps if necessary.”
