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With winter and the elections approaching, the White House decided to release the oil to replenish low supplies of heating oil in the Northeast and Midwest.
What troubles policy makers and economists this fall are the low supplies of heating oil, as both the cold weather and the presidential vote approach.
Low supplies of oil last year, a result of OPEC production cuts in 1999, helped drive up summer gasoline prices in the United States.
But now economists, oil traders, refiners and politicians are divided about whether current high prices and low supplies of petroleum constitute a new kind of crisis that should be addressed by tapping the reserve.
Indeed, crude oil prices in the United States have been driven up largely because of concern over the low supplies of crude oil and heating fuel compared with the levels in previous years.
The Department of Energy said today that it had awarded contracts to nine companies that had bid for oil from the government's reserve in an effort to replenish low supplies of heating oil in the Northeast and Midwest.
Similar(39)
The relatively low supply of houses available has meant bidding wars, a reflection of the strong seller's market.
Still, a low supply of homes for sale is just one of several constraints that could limit sales.
A low supply of new homes does not, by itself, affect demand, and there are reasons demand remains subdued.
Stores are suffering from the high demand but low supply of cannabis, which can only be acquired from state-certified growers.
The low supply of teachers, combined with a deregulated salary structure, also means you have to pay more to get tutors".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com