China and other foreign markets likely benefited more than American drivers after President Obama tapped the U.S. Strategic Petroleum Reserve to relieve price pressure, according to US News and World Report.
"Yes, the government can reduce the price of oil by suddenly releasing 30 million barrels from our reserves," says But it does not help the United States in any way. Even if it reduces the price of gasoline by 10 cents a gallon and saves the average consumer $6 a month, it does so over the entire world, not just in our country," says financial analyst David Marotta, president of Marotta Wealth Management in Charlottesville, Va.
"Oil is bought and sold on a world market," said Marotta in his memo to clients. "So long as a free market exists for oil, the market will price oil appropriately. And the only effect of releasing our oil reserves is to lower world oil prices."
And since China now tops the United States as the world's largest consumer, it's likely that China benefited more, Paul Bedard writes in Washington Whispers.
"China now accounts for 20.3% of global demand compared to only 19% for the United States. So although the American consumer paid the bill for the entire release of oil, 81% of our largess benefited foreign countries. No wonder a new poll shows Obama remaining so popular overseas," he writes.
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