Number: RL32358
Title: The Strategic Petroleum Reserve: Possible Effects on Gasoline Prices of Selected Fill Policies
Authors: Robert Bamberger and Robert Pirog, Resources, Science, and Industry Division 
Abstract: This report examines the factors that are currently influencing crude oil and gasoline prices, and reviews the extent to which prices might be correlated with the Strategic Petroleum Reserve (SPR) fill policy. If royalty-in-kind (RIK) oil was released to the market, gasoline prices might be affected. Since crude oil is a raw material in the production of gasoline, a reduction in the price of oil might pass through to the price of gasoline. To the extent that the capacity to refine additional barrels of crude directed to the market exists, and the diverted RIK oil is not offset by reduced crude oil imports, consumers might benefit. However, the amount of RIK oil, relative to the total market, is small, and when coupled with other market dynamics, the effect of changes in SPR fill policy on crude and product prices could be only minimal.
Pages: 8
Date: September 27, 2004