Democrats urge Obama to tap oil reserve

strategic petroleum reserveLawmakers say the move would calm speculators, who are driving up oil prices based on Mideast violence. By Steve Hargreaves, senior writer


NEW YORK (CNNMoney) -- 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.

In a letter to Obama, Massachusetts Representative Edward Markey, Connecticut Representative Rosa DeLauro, and Vermont's Peter Welch said soaring energy prices stemming from supply disruptions and rampant speculation in the oil markets are making it hard on American consumers and businesses.

"We therefore urge you to consider leveraging the SPR to respond to these supply disruptions and combat the rapid price escalations," the letter said.

The nation's strategic reserve, located man-made underground salt domes in Texas and Louisiana, holds 727 million barrels of oil. That's enough to cover U.S. oil imports for 85 days, or most of the oil exported from the Persian Gulf for 48 days.

The lawmakers said releasing oil from the SPR would send a strong message to oil traders that the American government is ready to act.

The White House did not immediately respond to an email seeking comment.

Oil prices have surged 14% since protests began in the Middle East two months ago, with most of that rise coming in just the last week.

Oil prices dropped 33% when President Bush tapped the SPR during the Gulf War in 1991. Prices also dropped 19 percent when Bill Clinton tapped it in 2000 and 9% when George W. Bush used it following Hurricane Katrina, the lawmakers pointed out in their letter.

Ray Carbone, president of the oil trading firm Paramont Options, said releasing oil from the SPR is one of the things traders were watching for, and that it could help calm oil prices, if only temporally.

So far, it appears that Libya is the only country to see its oil output cut as a result of the recent upheaval. Reports Wednesday said half of the country's 1.6 million-barrel a day oil production is shut in.

But traders fear the unrest could spread to other, larger oil producers in the Persian Gulf, which provide the world with about a fifth of the 87.5 million barrels it consumes daily.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,982.59 0.00 0.00%
Nasdaq 4,444.91 0.00 0.00%
S&P 500 1,978.91 0.57 0.03%
Treasuries 2.49 0.02 0.89%
Data as of 11:57pm ET
Company Price Change % Change
Apple Inc 99.02 1.99 2.05%
Facebook Inc 74.92 -0.06 -0.08%
Bank of America Corp... 15.50 -0.09 -0.58%
Dollar Tree Inc 54.87 -0.08 -0.15%
Family Dollar Stores... 75.74 15.08 24.86%
Data as of 4:03pm ET

Sections

Herbalife shares tumble after the maker of nutritional supplements reports earnings that fall short of analysts' estimates. More

New annual report from U.S. government shows the long-term prognosis for Medicare has improved thanks to slower health spending, while the outlook for Social Security remains unchanged. More

Online dating site OkCupid found its users were more likely to have conversations when it told them they were more compatible than in reality. More

Actor-founded This Bar Saves Lives had Hollywood connections, but learned Start-Up 101 the hard way. More

Steve Mason, a pastor from California, inherited more than $100,000 in student loan debt when his 27-year-old daughter died suddenly in 2009. With interest and late penalties, the debt has since ballooned to $200,000. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.