(Image source: Forbes)


BY DAN CORNFIELD
 

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60 million barrels of oil.

The International Energy Agency announced plans to release oil from strategic reserves in an attempt to control costs ahead of the summer driving season.

“This release is the largest ever. By comparison, after Hurricane Katrina, the DOE released 11 million barrels from the SPR.”

“The concept being, Simon, oil as you know, is priced at the margin. So a small amount the thinking goes, could have a large effect.” (CNBC)

30 million will come from the U.S. Strategic Petroleum Reserve.

A couple weeks ago, President Obama foreshadowed the move, saying the Libya conflict had taken 125 million barrels of oil off the market. He told reporters at a White House gathering...

“My general view has been that the strategic petroleum reserve is to be used when you don’t have just short term fluctuations in the market, but where you have a disruption.”

The disruption prompting this release -- Libyan oil production. But Fox News contributor Bill Kristol says the White House made the decision for the wrong reasons.

“There’s no serious economist or energy expert who thinks this is a good time to release oil from the Strategic Petroleum Reserve. Oil prices have actually topped out and have been going down the last three, four weeks. In any case this is a very small release and it doesn't address the issue.”

“So it’s not a serious energy policy matter. It’s a political decision.”

According to government estimates - the U.S. consumes 18 million barrels of oil a day. Business Insider’s Joe Weisenthal says the release isn’t worth a day and a half of energy.

“Sure, into a weak, jittery market that was already selling oil this morning, today's news caused a bit of a jolt, but this really is a big, inconsequential waste.”

So while the amount is not staggering, it could be the shot in the arm the economy needs. CNN’s Poppy Harlow says there could be a direct impact on prices at the pump.

“Oil prices are down more than 4%. I want to show you where gas prices are on an average here in the the U.S. Right now they’re at $3.61 a gallon. So the thought here is that over the next few weeks you’re going to see those average gas prices going down.”

 

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Transcript by Newsy.