Skip to comments.U.S. weighs release of oil reserves, world frets about Iran (Turbo TaxCheat Timmy says on CNBC)
Posted on 02/24/2012 11:38:10 AM PST by NormsRevenge
WASHINGTON (Reuters) - The United States is considering a release from its strategic oil reserves, Treasury Secretary Timothy Geithner said on Friday, acknowledging the harm that supply disruptions from Iran could have on the global economy.
Rising tensions between Iran and the West .. have fueled a rise in oil prices, pushing benchmark Brent crude above $125 a barrel on Friday.
"There is a case for the use of the reserve in some circumstances and we will continue to look at those and evaluate that carefully," Geithner said on CNBC television.
"Obviously Iran can do a lot of damage to the global economy," Geithner said. "We are working very carefully to try to minimize that risk, make sure there are alternative sources of supply from Saudi Arabia and others to help compensate for reduced exports from Iran."
The United Nations' nuclear watchdog, the International Atomic Energy Agency, warned on Friday that Iran has sharply stepped up its uranium enrichment drive. The IAEA report was seen as inflaming fears in Israel, which has threatened pre-emptive strikes on Iran's nuclear sites to stop it pursuing Iran an atomic weapons program.
The fear of tightening supplies, exacerbated by a threat from Tehran to close the Strait of Hormuz - the main Gulf oil shipping lane - have driven oil prices higher, putting political pressure on President Barack Obama, who is running for re-election in November.
The appetite for a coordinated opening of reserves by the United States and other nations may not be as high as last June, when Western nations agreed to release a total of 60 million barrels of oil in response to supply disruptions from Libya.
Angel Gurria, secretary general of the Organization for Economic Co-operation and Development, said releasing reserves now would not help dampened oil prices.
(Excerpt) Read more at news.yahoo.com ...
Whatever it takes to get Obama 5 more years. ;-)
The petroleum reserve is when supplies are very tight. That’s why it was created.
Supplies ain’t tight.
Then he wouldn't have to worry about all this other nonsense.
Excuse me, but if we are now exporting gas why do we need to release the reserves?
We need the reserve when the oil supply is disrupted, not before.
maybe Obama has already sold off most of the reserves
Didn’t we already do this dance or discuss it anyway. IIRC, it was decided that releasing the reserves wouldn’t help a damn thing. I think it was a bunch of commie ‘RATS who tried to make that point.
Just like the TV Poker Stars.
I can just hear the Abomination thinking.....It’s not my money nor my country....and then saving “ALL IN”.
So more supply lowers prices?? Glad they admit it.
Pray for America
Part of the problem may be limited domestic refining capacity. There are reports that refineries are now in the process of switching from winter to summer gas blends. So increasing the crude oil input, from whatever source, isn’t going to do diddley.
YES...this happens EVERY year...the switch from the winter to summer blend or some such thing....
High Oil means Obama is a one term President and I will gladly pay for that coming true.
Hey it will be “BRILLIANT” if we release 60 million barrels of oil, (a 3 day supply) purchased when Oil was around $70 a barrel, so that it can be replaced at $130 a barrel, on the backs of the tax payers. Just print more money, ink and paper is so cheap.
Obama would trade his family for a second term.
The Strategic Petroleum Reserve may as well be renamed The Politician Arse Covering and Manipulation Reserve.
Not surprising if he does this. he needs lower gas prices for re-election this should do it.
It also makes the SOR real low so later on down the road the gas prices can shoot up to $10 gallon because the reserve will be low.
He gets 2 things by doing this. Another win for him another hit for our country.
Please note that the global demand for oil is pushing 90 million barrels a day...its the US demand that is 20 million barrels per day. Since crude oil is a global commodity and we import more crude oil than we produce the proper way to think of a 60 million barrel disbursement would be as 2/3's of one day's global demand...in other words it would have no impact on the global price of oil.