Exclusive: U.S., Britain to agree emergency oil stocks release

Reuters ^ | 3/15/2012 | Richard Mably

[mojito]

Britain has decided to cooperate with the United States in a bilateral agreement to release strategic oil stocks, two British sources said, in an effort to prevent high fuel prices derailing economic growth in an election year.

A formal request from the United States to the UK to join forces in a release of oil from government-controlled reserves is expected "shortly" following a meeting on Wednesday in Washington between President Barack Obama and Prime Minister David Cameron, who discussed the issue, one source said.

Britain would respond positively, the two sources said.

[RedCell]

Doom on them.

Did you do a Dick Marcinko-ism on purpose? If so... nice.

[rwfromkansas]

This only brought down prices a few cents last year when he pulled this.

It will have virtually no impact.

[The Pack Knight]

I didn’t like it much when Bush did it, and he wasn’t simultaneously trying to torpedo domestic oil production. This is just plain asinine.

[Vanders9]

Well, first of all gas is not $12 a gallon in Britain. Measuring like for like its actually about $7.50 a gallon, which admittedly isn't good, but not quite as bad as the shock figures often quoted, particularly as fuel at British pumps is higher octane than the stuff you use in the US. Basically we get more "bang for our buck".

$4 a gallon US gas IS a strategic crisis for Britain, but more importantly $8 a gallon British gas is a strategic crisis for Britain. They fear that rising gas prices will affect everything else in the economy, as the cost of just about everything else is dependent on gas prices, somewhere along the line. Flooding the market with gas from the strategic reserve should reduce its price, and therefore prevent economic problems. Presumably the option of simply lowering the tax they place on oil didn't occur to them.

I think its probably unfair to suggest this is being done solely to help re-elect Obama, but let's just say the needs of the economy and of Obama's re-election campaign dovetail very nicely here. Of course, its a very bad way of going about things. The problem with releasing the strategic reserve is that it is a finite commodity. Once gone, it cant be used again, and prices will rise. Skyrocket actually, as the producer nations know we have no option but to buy it. I would hope most people will see through this ploy, but given the current level of political consciousness in both Britain and the US I very much doubt they will. Most people will be only too happy to take the slightly reduced price at the pumps and shower Obama with credit for it.

[DuncanWaring]

I did not realize that was a Dick Marcinko-ism.

I thought it was a Squantos-ism.

Seemed appropriate, given the situation. ;-)

[silverleaf]

I have no idea why the Brits are being pulled into providing cover for obama to help his reelection. Do they really think this guy is the best US leader for this time in history?

I understand why the Queen invited Barry and Moochelle over last spring and treated them like Lord and Lady Obama (to which they embarrassed her and us)- white guilt and compensation prize for her grandson William having enough spine to ban these partying Brit-hating grifters from his wedding.

But Cameron? The press today says obama met with a “conservative” leader to bolster his creds as a “moderate”
Barry even took Davie up to Wall Street to meet his (Barrys) handlers at Goldman Sachs.

Good God, men, stay home and let this incompetent ideologue sink in the poo of his own making among the US voters. Euro socialists already helped foist this psychologically, intellectually and emotionally stunted disaster of a human on us in 2008. I thought you guys were allies?

Oh and batten down the hatches for the coming time when this incompetent US administration finally miscalculates fatally, loses control and things start to pop in the middle east and SWA, and the world financial markets implode.

[Whats-wrong-with-the-truth]

"...in an effort to prevent high fuel prices derailing economic growth in an election year."

WHAT "ECONOMIC GROWTH"? and what's with this "election year" crap? In my opinion NO YEAR is a good year for 'high' fuel prices.

[Squantos]

Actually a world war two’ism....
Marcinko just writes it down like I do an many others do as well.....

I’m not a fan of marcinko ....thus I never quote him.

Stay safe...

[newzjunkey]

LOL. Never saw that coming. You would ALMOST think this is purely a political move during an election year.

You might think so! /s

Bush vetoed a measure by Pelosi & Reid to halt stop of the Strategic Petroleum Reserve and his veto was overridden. This '08 article about that override says it would amount to as little as 1 penny per gallon difference. It also says an GOP measure to increase drilling on federal lands failed. CNN assigned the motivation only to Republicans of being concerned over "their re-election" chances. Democrats are never motivated by electioneering or politics. /s

This piece from July 2000 is about "skyrocketing prices" because it had broken the $2/gallon price ceiling in Chicago and Detroit. Clinton/Gore demanded a FTC probe into "price gouging."