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 – both in its impact on consumers and the overall economy, and on Obama’s political fortunes. It was no coincidence that, before the US killing of Osama bin Laden, Obama’s 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’t necessarily give a president a boost).
That said, high gas prices don’t necessarily spell doom for Obama’s reelection prospects, according to Isaac Wood at the University of Virginia Center for Politics. “While continually rising gas prices would likely weaken Obama’s reelection standing, it would be just one of many factors voters consider when evaluating his first term,” Mr. Wood writes.
Obama has said there’s no “silver bullet” 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’s 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.
