Obama administration officials have contacted energy experts in recent days to discuss oil market conditions as the president weighs a military strike against Syria, sources familiar with the matter told Reuters.
There are no signs the government is preparing to tap emergency oil reserves soon in a bid to tame rising prices, according to the sources who spoke with Reuters this week, though the administration is closely monitoring the situation.
U.S. consults oil experts as it weighs action against Syria
BREAKING! U.S. willing to act alone on Syria attack! It’s ON!!
U.S. willing to act alone on Syria attack
WASHINGTON — The White House signaled that the United States would act alone in Syria if necessary to protect its national security interests, as a Western coalition that just days ago appeared determined to launch a joint military action split wide open.
President Obama appeared increasingly isolated after British Prime Minister David Cameron lost a vote Thursday in the House of Commons on endorsing military action. It was a stunning defeat for a government that days ago called for punishing Syrian President Bashar Assad’s forces for alleged use of chemical weapons against rebel-held neighborhoods last week.
Will War With Syria Cause The Price Of Oil To Explode Higher?
Are you ready to pay four, five or possibly even six dollars for a gallon of gasoline? War has consequences, and a conflict with Syria has the potential to escalate wildly out of control very rapidly. The Obama administration is pledging that the upcoming attack on Syria will be “brief and limited” and that the steady flow of oil out of the Middle East will not be interrupted. But what happens if Syria strikes back? What happens if Syrian missiles start raining down on Tel Aviv? What happens if Hezbollah or Iran starts attacking U.S. or Israeli targets? Unless Syria, Hezbollah and Iran all stand down and refuse to fight back, we could very easily be looking at a major regional war in the Middle East, and that could cause the price of oil to explode higher. Syria is not a major oil producer, but approximately a third of all of the crude oil in the world is produced in the Middle East. If the Suez Canal or the Persian Gulf (or both) get shut down for an extended period of time, the consequences would be dramatic. The price of oil has already risen about 15% so far this summer, and war in the Middle East could potentially send it soaring into record territory.
Follow IWB on Facebook and Twitter