WLWT: UC economics professor reacts to release of oil reserves

Asawari Deshmukh warns that it could be weeks before gas prices drop

In an effort to stave off rising gas prices caused by Russia’s invasion of Ukraine, President Joe Biden announced Thursday that he will tap into the nation’s strategic oil reserves.

A woman in a red sweater smiles.

Asawari Deshmukh, assistant economics professor-educator at the University of Cincinnati Carl H. Lindner College of Business.

By releasing 1 millions barrels per day over the next six months, Biden estimated the move could drop gas prices somewhere between 10 to 35 cents.

Asawari Deshmukh, assistant economics professor-educator at the University of Cincinnati Carl H. Lindner College of Business, told WLWT that it could be weeks before drivers witness price drops.

“For this announcement to actually take effect, and this crude oil to reach the market, it takes about a week or 10 days, and then it would take another few weeks for it to really show,” Deshmukh said.

Biden’s decision is not a long-term fix, but Deshmukh said this is a prudent time to release the reserves.

“It's a world emergency, so why not use it now?” Deshmukh said. “And we do replenish those reserves.” 

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