The SMH has a look at the politics surrounding the announcement the US and UK will release oil supplies from their strategic reserves to try to lower oil prices (something the oil industry appears intent on fighting a vigorous PR campaign against, along with their Republican emissaries in Washington, judging by some of the FUD being spread about it) - Tapping strategic oil reserves is tricky.
The US Strategic Petroleum Reserve isn't quite as strategic as it used to be.As President Barack Obama moves closer to an unprecedented second release of the US emergency oil stockpile in a bid to bring down near-record fuel prices, experts say dramatic logistical upheavals in the US oil market over the past year may now make such a move slower and more complicated.
Moving to tap the four giant Gulf Coast salt caverns that hold 700 million barrels of government-owned crude would still almost certainly knock global oil futures lower, delivering some relief at the pump for motorists and helping Obama in the November election if he can prevent gasoline from rising above US$4 a gallon nationwide.
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