Obama suggests tapping US oil reserves

Chicago: Barack Obama proposed tapping the country's strategic oil reserve on Monday to help lower gas prices, reversing an earlier stance, and called rival John McCain a tool of big oil companies as rising energy costs took centre stage in the US presidential campaign.

Obama, celebrating his 47th birthday, unveiled a package of steps designed to end US reliance on oil imports from the Middle East and Venezuela within 10 years, including tax credits for buyers of fuel-efficient hybrid cars.

In a speech in Michigan, he proposed releasing 70 million barrels of light oil, easier to refine into gasoline, from the emergency US stockpile.

The Democratic senator from Illinois said the light oil could be replaced later with heavier crude in a swap designed to bring quick relief from high petrol prices.

Obama said, "We have to make a serious, nationwide commitment to developing new sources of energy and we have to do it right away."

McCain fired back in Pennsylvania, criticising Obama's opposition to nuclear power and offshore drilling and calling on Congress and Obama to return to Washington from their summer break to try to solve the country's energy challenges.