WASHINGTON (voa) – President Bush says he will consider a variety of options to counter a possible rise in world oil prices following Iraq’s protest move to cut its exports for 30 days.
Mr. Bush, saying the United States must be less dependent on foreign oil, said options included drilling in the Alaska arctic refuge, tapping the U.S. strategic petroleum reserve or reducing gasoline taxes.
Environmentalists oppose the Bush administration plan to drill in Alaska, saying it would endanger wildlife in the area.
Iraq decided Monday to cut its exports for one month to protest Israeli policies against Palestinians. Baghdad called on other Muslim and Arab countries to also suspend crude shipments to countries allied with Israel.
In other developments Tuesday, dissident state oil workers began a strike in Venezuela, one of the main oil suppliers to the United States. At least 20 oil tankers were reported to be waiting offshore in Venezuela as workers refused to load them. The work stoppage was called to protest management at the state-run Petroleos de Venezuela. Venezuela exports nearly one million barrels daily to the United States.
World oil prices did fall on Tuesday, as other major oil producers, Saudi Arabia, Kuwait, Iran and Libya, declined to join Iraq’s oil protest to oppose Israel. Saudi Arabia’s Oil Minister Ali al-Nuaimi is quoted as saying his country is committed to guarantee stability in the international oil market. He also says Saudi Arabia rejects the use of oil as a weapon to apply political pressure.
The drop in oil prices Tuesday also came amid optimism that tensions in the Middle East may ease, after Israel said it was withdrawing its forces from two towns in the West Bank.
In recent weeks, however, oil prices have risen sharply amid increased demand from recovering economies, OPEC cutbacks in production and the tensions in the Middle East.
