Obama taps US oil reserve to cut price amid Libya war

Oil prices fell as much as 6% this morning as President Obama says he's agreed to sell millions of barrels from the Strategic Petroleum Reserve "in coordination with the International Energy Agency" to counter inflationary pressure from the cutoff of Libyan oil due to NATO attacks and civil war in the North Africa nation, and to threatened cuts from Arab countries facing political strife.

The IEA, a group of 28 energy-importing nations, earlier today said it had convinced the US and other governments to release a total of 60 million barrels over the next month to help replace the 132 million barrels that Libya hasn't shipped this year. The world burns more than 80 million barrels of oil a day.

Obama said in March he would consider opening the strategic reserve if needed. US doesn't buy a lot of Libya oil, but Europe does; shortages there drive prices up everywhere.