There has been a significant amount of conversation this week about a potential release of the Strategic Petroleum Reserve by the Obama administration. The Heritage Foundation takes a look at what such a move would really do (or not do) to gasoline prices.
From The Foundry:
Before Obama announces the SPR release, the price is already declining. He announces, and the price continues to decline; then, it levels off and starts to go back up. Immediately upon the start of the SPR release, nothing changes, and the price continues to rise. The price declines; then it rises again. Immediately upon the cessation of the SPR release, nothing happens, and the price continues to rise. Then, without further release from the SPR, it goes back down.
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