The fall in global oil prices at the end of the first week of May could signal relief for consumers at the pump. But the spike in US gas prices to $4 a gallon, after a steady escalation in the cost of crude oil, remains a source of concern for the White House 鈥� both in its impact on consumers and the overall economy, and on Obama鈥檚 political fortunes. It was no coincidence that, before the US killing of Osama bin Laden, Obama鈥檚 job approval ratings were tied with the lowest levels of his presidency.
Indeed, researchers have found a historic correlation between high gas prices and low job approval (though low gas prices don鈥檛 necessarily give a president a boost).
That said, high gas prices don鈥檛 necessarily spell doom for Obama鈥檚 reelection prospects, according to Isaac Wood at the University of Virginia Center for Politics. 鈥淲hile continually rising gas prices would likely weaken Obama鈥檚 reelection standing, it would be just one of many factors voters consider when evaluating his first term,鈥� Mr. Wood writes.
Obama has said there鈥檚 no 鈥渟ilver bullet鈥� to bring prices down. But he still took action. On April 21, Obama announced a Justice Department task force to monitor oil and gas markets for evidence of fraud or manipulation. The president is also proposing an end to the $4 billion in taxpayer subsidies to the oil and gas industries. Critics say the president鈥檚 actions are political and, in the case of removing subsidies, would be counterproductive. They also argue he should be doing more to exploit domestic sources of energy. Obama argues that US oil production last year was at its highest level since 2003.
