Business | Economy
Obama says US ready to tap oil reserve, economy strong
Directs Justice Department to be alert for price gouging
- Bloomberg
- Published: 00:00 March 13, 2011
- Image Credit: AFP
- US President Barack Obama, during a press conference at the White House on Friday, said the US is prepared to to tap emergency US oil stockpiles as Middle East violence pushes up gas prices.
Washington: President Barack Obama said he's prepared to tap the nation's oil reserves if necessary to deal with any supply disruptions, while also insisting that the American economy can withstand high fuel prices.
"If we see significant disruptions or shifts in the market that are so disconcerting to people that we think a Strategic Petroleum Reserve release might be appropriate, we'll take that step," Obama said. The president has directed the Justice Department to watch for any evidence of price gouging.
"In an economy that relies on oil, gas prices affect everybody," Obama said at a White House news conference. While higher fuel prices are "an added burden" for American families "already facing tough times," he said, the US economy is better prepared to absorb a supply disruption than in the past.
Obama refused to say what level prices would have to hit in order to prompt the government to open the reserve supplies stored in caverns along the US Gulf coast. He said the government could begin pumping from the reserve within a few days if necessary. "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," Obama said.
The cost of oil has surged 23 per cent over the past year and petrol prices are at their highest in more than two years on concern that the unrest in the Middle East and North Africa will spread to major oil-producing countries. Petrol prices have increased every day except one since mid-February, and the average retail price for a gallon of regular petrol was at $3.54, compared to $2.77 a year ago, according to the AAA price survey.
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