Obama likely to tap Strategic Petroleum Reserve

The Wall Street Journal suggests today that part of the latest surge in China's oil imports is attributable to a desire to boost the country's oil stockpiles. The Wall Street Journal reports that for 2012:Q1,

The Obama administration joins with other nations to release 60 million barrels of oil from the Strategic Petroleum Reserve — with the U.S.

Dian L. Chu submits: In early March, White House Chief of Staff Bill Daley told NBC that the Administration was considering releasing oil from the Strategic Petroleum Reserve (SPR) if it deems the high oil prices would threaten the U.S. economic recovery.

President Barack Obama on Friday said he was willing to tap emergency US oil stockpiles, but indicated such a move was not yet needed, despite high oil prices caused by tension in the Middle East."Everybody should know that should the situation demand it, we are prepared to tap the significant stockpile of oil that we have in the strategic petroleum reserve," Obama said.

So far, high petroleum prices are helping Iran beat the new, ‘crippling’ US and EU sanctions. And, ironically, it is the Obama re-election campaign that is suffering most from the sanctions, not IranWhile Iran is producing about 500,000 barrels a day less today than was typical for it in recent years, the price has risen over 20% in recent months.

Three House Democrats urged President Obama Thursday to tap the nation's Strategic Petroleum Reserve as turmoil in the Middle East pushed oil prices over $100 a barrel.

According to a recent report by Bloomberg, the US and EU sanctions have already caused a 52% fall in shipments exporting oil from Iran, equating to 1.2 million barrels per day, about $133 million worth of crude.US Congress has now passed a new set of sanctions aimed at punishing banks, insurance companies, and shipping companies which deal with Tehran in oil trades.Republican Representative Ileana Ros-Lehtinen, chair of the House Foreign Affairs Committee, said that the new sanctions seek “to tighten the chokehold on the regime beyond anything…