The United States along with other world powers and in particular the International Energy Agency are releasing 60 million barrels of oil. The move is an effort to reduce gasoline prices that have escalated in the past few weeks. Now that Russia has invaded Ukraine there is fear fuel supplies will be further depleted and prices will continue to escalate.
The US imposed strong economic sanctions on Russia that have caused the ruble to plummet in value to less than a penny compared to the US dollar. While the sanction did not include fuel and power supply from Russia, there remained a fear that Russia would withhold the fuel in retaliation.
Fuel prices have been steadily increasing for months as the economy recovered from the pandemic. A combination of inflation caused by the trillions of dollars pumped into the economy during the pandemic, combined with a strong surge in demand for products have devastated American pocketbooks.
It is believed the release of fuel will stop the climb of the cost of a gallon of gas and may even begin the process of dropping prices.
The west coast, New York, DC and Illinois all have gas prices above $4 a gallon. Here in Mississippi, gas prices are averaging $3.27 state wide.