Politicians prime the pump

Politicians prime the pump

Kansas City Star: The global effort to lower fuel prices by releasing oil from reserves comes at an odd time. Gasoline prices have been falling for at least six weeks. The average U.S. price — $3.61 — is already 8 percent below its peak in early May.

We’re not facing a significant supply crunch. What seems to be going on has less to do with market conditions than with politics, specifically the Obama administration’s deepening worries that the economy is stagnating or veering into a double dip.

About half of the oil release — about 1 million barrels a day — will come from U.S. reserves over the next 30 days. Yes, it will have an effect. It already has: Oil prices dropped by several dollars after the announcement, a hefty move that also reflected broad hints from the administration that more oil releases are in store.

In the short run, it’s good news for consumers and the economy. But the longer-run effect will be much more iffy.

Rather than abet the oil thirst with cheaper gas, the nation still needs far more investment in alternative energy development.