US considers selling strategic oil reserves

With gas averaging $3.50 a gallon due to ongoing unrest across the Mideast and North Africa, the United States will seriously consider tapping its petroleum reserve stored underground along the Gulf Coast the White House chief of staff, William M Daley, said yesterday.

There is wide concern that crude prices above $104 a barrel could damage the US economic recovery.

Brent crude gained $2.20 to $118.17 at 1122 GMT today. US crude was up $2.26 at $106.68, having earlier risen as high as $106.82, the highest since September 2008.

''It is something that only has been done on very rare occasions,'' Daley said on ''Meet the Press'' on NBC, adding, ''It is something we are considering.''

Administration officials have sent mixed signals about the possibility of opening the reserve, which would add supply to the domestic oil market and tend to push down prices.

Energy Secretary Steven Chu said on Friday that the administration was monitoring prices.