Obama May Tap Oil Reserves

White House wants to reduce prices to help consumers, hurt Iran
By Kevin Spak,  Newser Staff
Posted Aug 17, 2012 1:19 PM CDT
Obama May Tap Oil Reserves
A man pumps gas into his dual-tank pickup truck at a 76 gas station in Los Angeles, Aug. 10, 2012.   (AP Photo/Grant Hindsley)

Think the price of gas is getting too high? The Obama administration agrees. It's currently "dusting off old plans" to potentially tap the Strategic Petroleum Reserve, a source tells Reuters. Driving down the price of oil would help consumers and the US economy while also hurting Iran, ensuring sanctions are especially painful, the source explains.

Brent crude is currently nearing $120 per barrel, up from $90 in June. The White House will watch the markets for a few more weeks before deciding whether to act—prices typically fall on their own after Labor Day. The administration also hasn't yet talked to its allies about a coordinated move, though the source notes that when similar plans were broached a few months ago, France, Britain, and Germany all seemed willing. (Read more strategic petroleum reserve stories.)

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