Oil prices still rising, Obama mulls tapping domestic petroleum reserve

Oil Prices Rise Amid Middle East Tension

Oil prices have risen 22 percent in the past year and the ongoing tension in the Middle East is likely to make matters worse. The per gallon price of regular gasoline has hit $3.54 yesterday compared to just $2.77 one year earlier, figures from AAA showed.

In light of looming oil supply disruptions, some are urging the opening of the U.S. Strategic Petroleum Reserve to cope with the danger. President Barack Obama said that he is willing to tap the reserve when the need arises.

"In an economy that relies on oil, gas prices affect everybody," he said at a press conference at the White House today. Obama described the skyrocketing oil prices as an "added burden" for those "already facing tough times."

But the President did not specify the threshold oil prices will need to breach for the petroleum reserve to be opened.

"One of the messages that I want to send today is that we are confident about our ability to fill any potential gaps in supply," he added.

Obama said recent tax cuts, $80 a month on average, will offset some of the added cost of gas for American consumers. He said the economic recovery is underway regardless of the rising gas prices and potential oil supply disruption.

The President took the chance to highlight one of his centerpiece programs: clean fuels. He said that developing alternative sources of energy will help the U.S. in the long run to reduce the dependency on other countries and to limit the impact of rising oil prices.

Posted by James Fried on Monday March 14 2011, 5:29 AM EDT. Ref: Bloomberg. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0