British Prime Minister, David Cameron, after meeting with President Obama, said he would consider releasing strategic oil reserves to quell soaring fuel prices:
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“Short term, should we look at reserves? Yes, we should.”
The United States is expected to issue a formal request, but as the United Kingdom has comparatively negligible strategic oil reserves, any deal would be mainly symbolic.
The rising oil prices – up 16% this year and set to run higher with Iranian sanctions in the works – are causing political difficulties for President Obama, so tapping into the Strategic Petroleum Reserve, according to a Reuters source, is “more of a matter of when than if.”
(Check out Martin Denholm’s Wall Street Daily article this morning for more information on the use of strategic petroleum reserves.)