In an effort to lower gas prices, President Joe Biden announced on Tuesday that 50 million barrels of oil will be released from the Strategic Petroleum Reserve.
Biden directed the Department of Energy to release the oil in a joint effort with other energy-consuming countries, including China and Japan.
32 million barrels will be used as an oil exchange that will be returned over the next few years, and 18 million barrels are an acceleration of a previously authorized sale by Congress.
However, a market specialist says releasing oil from the reserve will only hurt in the long run.
“If OPEC chooses to lower production of oil to compensate for us taking oil out of the what?” said Eugene Graner, president of Heartland Investor Services. “Strategic Reserve, which is invented for keeping us safe during times of war and catastrophe, you should be worried about that because of our future. It’s like drawing out of your savings account, which puts you at risk into the future.”
To hear more of what Graner has to say about the impacts of the directed oil release, watch our KX Conversation here.