New York, New York (WiredPRNews.com) — CNN reported that on Friday, the government said that it is going to stop delivering to oil reserves during the month of July. Lawmakers assume that this move is an attempt to bring down gas prices and to increase oil supplies.
Although the prices of oil saw a decrease, it has settled at the record price of $126.29 per barrel. President Bush had pleaded to Saudi Arabia to increase the production which was rejected, saying that their customers are not demanding as much oil. The Associated Press reported that Ali al-Naimi, the Saudi minister of oil, said that their kingdom has decided to raise the production of oil by around 300,000 barrels at the demand of the customers and they think that this increase in the production is sufficient.
Megan Barnett, the spokesperson for the US Energy Department, said that the department has decided to stop purchasing oil from July till December. The Bush government has been filling the reserves since 2001, increasing it from around 539 million barrels and now it is around 702 million which will be enough to serve for nearly 58 days if the imports get disrupted.
Supporters have stated that if the shipment to strategic reserves are stopped, there is a possibility that the price of gas will come down by at least 24 cents per gallon.
Wired News Reporter