As oil and gasoline prices spiral even higher,The United States and several European countries are discussing releasing oil reserves from the their strategic oil reserves to try and bring prices down, especially at the pump.
But Ed Weglarz of the Associated Food and Petroleum Retailers of Michigan and Ohio, representing gas station dealers in the two states, says the impact would be brief, judging by what happened the last time the U.S. drew from its strategic reserves. " I'm not sure how long the effect would be though. It seemed to have an effect for a day and a half, and then the price jumped right back up to where it was and continued its slow and steady climb," says Weglarz.
Ed Weglarz says tapping the oil reserves would have the biggest impact on oil traders. " It does seem to have a bit of an influence, especially on the speculators. The people who are speculating in the oil market tend to get just a little antsy, and a little nervous when they see product released from the strategic oil reserve, and that tends to bring the price down temporarily."
Weglarz sees such action as mainly political.
"I think it is more a political move than it is really a move that's going to have a whole lot of effect, although you know nothing operates in a vacuum.