Biden administration’s release of oil from strategic reserve will lower gas prices, according to AAA

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Millions of Americans are hitting the road for Thanksgiving this week and those driving are paying more at the gas pump.

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 Petroleum 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 basic supply and demand issue is what drove up prices.

“OPEC (Organization of the Petroleum Exporting Countries) has been purposely withholding some of their petroleum products in an effort to push prices up and they’ve been successful with that,” says AAA spokesperson Clay Ingram.

President Biden says releasing oil from the strategic petroleum reserve should be a fix for high gas prices.

“Today we are launching a major effort to moderate the price of oil, an effort that will span the globe with its reach and ultimately reach your corner gas station god willing,” said President Biden.

But the Presidents actions will not solve the issue of high gas prices overnight. AAA says drivers will slowly notice a difference at the pump.

“We’re already in a little bit of a downward trend. We will probably hit a little bit of a plateau around Thanksgiving but once we get beyond that we should see prices continue to drop,” says Ingram.

AAA says drivers will likely see the full effects of this petroleum reserve release near the start of the new year.

Biden says the U.S. is working with other countries including China, India, Japan, South Korea and the United Kingdom in releasing oil reserves to drive down prices around the globe.

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