Reuters - Video

Edition: US | UK | IN | CN | JP

Video

Political conundrum: release oil reserves or lose elections

Thursday, April 05, 2012 - 02:48

April 5 - The stubbornly high price of petrol is proving a headache not just for the global economy but also for politicians seeking re-election. Axel Threlfall reports.

▲ Hide Transcript

View Transcript

Nationwide demonstrations. Strikes. Political unrest. The price of oil has become a major headache for politicians around the world not least for the forty or so seeking reelection in 2012. Leaders are taking flights so much so that the US UK and France considering tapping into emergency reserves. In a bid to prevent fuel prices choking off growth. In the states it's a driving issue in the 2012 election. The American Automobile Association predicts the price of gasoline could averaged more than four bucks a gallon by may. In an effort to shift the blame on to his Republican critics president Barack Obama has called on congress to end tax breaks for big oil companies. Members of congress this a simple choice to make. They gonna stand where -- Big oil companies weren't gonna stand with the American people. A bomber is right to worry. Research shows that over the lost 32 years presidents whoever sold relatively flat prices sold -- party stay in power. Almost all of those who experienced a rise of the pump in the year of the election were voted out of office. Fuel prices in France have also hit record levels prompting an intense debate between presidential candidates ahead of next month's election. While in the UK the prospect of a tanker driver strike sort panic buying and queues snaking out of full course. Last Friday a third of all petrol stations ran out of fuel. At the other end of the political and economic spectrum is Venezuela. Massive subsidies ensure venezuelans enjoy the world's cheapest fuel around two cents a Lisa. No politician on this year's election campaign trail all -- -- talk of changing bats. They still remember the 1989. Price hike which prompted cycle riots in the streets of Caracas. The seeds from breast are already taking -- in Indonesia where the government wants to cut subsidies and raise the price of fuel -- Meanwhile China's 79 million card drivers are beginning to think twice about filling up that tanks. Beijing has raised the price of petrol twice this year already. Ensuring a soft landing for its economy is Paramount before hand over power later on this year. As always the Middle East geopolitics will determine the fate of oil and petrol prices so will the actions of major central bank's critics say much of the cash they pumped into the banking system to ward off recession. Ends up in financial assets like commodities. In a backdrop of tight supply there's little governments can really do actual -- full for Royces.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Political conundrum: release oil reserves or lose elections

Thursday, April 05, 2012 - 02:48