Just in time for the 2012 Election!
WASHINGTON (Reuters) – The White House is “dusting off old plans” for a potential release of oil reserves to dampen rising gasoline prices and prevent high energy costs from undermining the success of Iran sanctions, a source with knowledge of the situation said on Thursday.
U.S. officials will monitor market conditions over the coming weeks, watching whether gasoline prices fall after the September 3 Labor Day holiday, as they historically do, the source said.
Just 2 months before the election. Hmmm, now why would Obama do this?
It was too early to say how big a drawdown would be from the U.S. Strategic Petroleum Reserve and, potentially, other international reserves if a decision to proceed was taken, the source said.
Oil prices have surged in recent weeks, with Brent crude prices closing in on $120 a barrel, up sharply from around $90 a barrel in July. The United States and other Group of Eight countries studied a potential oil release in the spring but shelved the plans when prices dropped.
With prices high again, U.S. officials were now collecting information from the market about potential needs and studying futures, production numbers and data on Iranian oil exports.
Shush! Reuters doesn’t want the readers to know that gas has been above $3 dollars each year Obama has been in office. It was a $1.87 a gallon the month he took office.
“The driving force in this is both impact on the economy and impact on the Iran sanctions policy,” the source said, noting that Washington did not want rising oil prices to create a windfall forIran while oil embargo and international sanctions were having an effective impact.
What does Iranian oil have to do with US prices? We don’t use their oil since it’s illegal to import.
The United States has not yet held talks with international partners about a coordinated move. The source noted that Britain, France, Germany and other partner nations in the Paris-based International Energy Agency (IEA) were receptive to a potential release a few months ago when conditions were similar.
Those countries were concerned about the impact of high oil prices on the global economy and Iran then, and those concerns remain equally relevant now.
“The logic behind a potential release in the spring is at least if not … more true today,” the source said.
Domestically, tapping reserves could spark criticism from Republicans, who would cast it as a political move to boost Democratic President Barack Obama’s chances in the November 6 election.
Because it would be a political move. Notice above the Sept. 3rd Labor Day mention. Releasing oil from US Oil Reserve would lower gas prices right in time for the election. Reuters wants people to think it’s not political because they have to protect their golden ticket.
The source said the White House had not discussed political ramifications because a decision on a release had not been made.
Another leak from the White House???