US, Allies Tap Oil Reserves To Offset Mideast Turmoil, High Gas Prices

"WASHINGTON — Wary of a new surge in gas prices, the Obama administration said Thursday it is selling off 30 million barrels of oil from the country’s emergency reserves as part of a broader international response to lost oil supplies caused by turmoil in the Middle East and North Africa, particularly Libya.

The release from the U.S. Strategic Petroleum Reserve will be the largest ever, amounting to half of a 60 million-barrel international infusion of oil planned for the world market over the next month.

Even so, the 30 million barrels to be sold by the United States represents less than two days’ worth of domestic oil consumption and about three days of oil imports.

White House officials would not predict how the release will affect prices at the pump, although the move is intended to increase U.S. supplies during the peak summer driving season."

Matthew Daly reports for the Associated Press June 23, 2011.

SEE ALSO:

"Crude Rebounds On Dollar; IEA Impact May Not Last" (Wall St. Journal)

"Tapping of Reserves Topples Oil Prices" (Milwaukee Journal Sentinel)

"Sanders, Welch Applaud Release of Oil Reserves" (Bennington Banner)

"White House Announces Plan To Tap Oil Reserve" (Los Angeles Times)

"Asian Nations Welcome Oil Reserves Release" (Wall St. Journal)

"US and Its Allies Attempt To Pull the Rug From Under OPEC" (Australian)

Analysis: "Strategic Oil Reserve or Short-Term Political Maneuver?: View" (Bloomberg Editors)

"White House’s Oil Gambit May Be A Gimmick" (Talking Points Memo)

"International Energy Agency Releases Oil From Strategic Petroleum Reserve To Help Lower Prices" (Kansas City Star)

"Strategic Petroleum Reserve Release Could Give Brief Economic Stimulus" (US News & World Report)

Source: AP, 06/24/2011