Fadel Gheit, a senior energy analyst for Oppenheimer, projected a more dramatic reduction in oil prices, noting that Obama's SPR plan could "cut prices in half."
Gheit said that prior releases from the SPR during the administrations of former Presidents Bush and Clinton during the 1990s were "knock-out punches" that caused oil prices to drop dramatically. He said that to maximize the impact, which is primarily psychological, Obama should not provide hard numbers to make it harder for speculators to project future prices.
"We should not have a limit on what we will release," said Gheit. "That is the best way to keep speculators off balance."
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