CHICAGO (CBS) — Just as prices already were falling, governments around the world are making a move to bring down the cost of oil even faster.
As WBBM Newsradio 780’s Regine Schlesinger reports, that should start showing up soon at the gas pump.
The Obama Administration is releasing 30 million barrels of oil from the Strategic Reserve into the oil market – part of an international move to add a total of 60 million barrels.
LISTEN: Newsradio 780’s Regine Schlesinger reports
Chicago energy analyst Phil Flynn, of PFGBEST, tells Newsradio 780 this is the world’s first response to the volatility from the troubles in Libya.
“We’re not talking about a tremendous amount of oil here, but it’s just enough, perhaps, to ease some of the lingering concerns on the supply side,” Flynn said.
He says the effort should further bring down gas prices.
“Chicago, of course, is famous for their high gasoline prices, but I think we’re going to start seeing a substantial drop in the pump in the Chicago area – maybe 25 to 30 cents a gallon pretty soon,” Flynn said.
According to ChicagoGasPrices.com, the average price of a gallon of regular unleaded is now about $4, compared with $3.83 statewide and $3.63 nationally.