As Republican presidential candidates Barack Obama to throw barbs on expensive gasoline, the U.S. president and his team go on the offensive with a strategy to deflect blame and prepare voters for higher costs.

 In ways subtle and not so subtle, Obama, a Democrat, is raising the issue of high prices to promote its own political priorities and sharp criticism of the men vying for the overthrow in November 6 election.

His strategy is both politically and policy-oriented. The president wants to advance its plans to increase renewable energy sources and reducing U.S. dependence on foreign oil.

But he also needs to win the war of words to have a control over the Republicans in the battleground states of the West such as Colorado, Nevada and New Mexico, where people drive a lot and feel the sting of higher prices acuity.

Republicans see many weaknesses to exploit. They blame Obama for not doing enough to increase domestic production of fossil fuels and to quote its decision to block a new pipeline from Canada as evidence that he is indebted for environmentalists.

The cost of gas rising brought the issue to the forefront of the presidential campaign. So, Obama began to pepper his speeches with references to the pump price.

Tuesday, he cited the extension of the tax cut payroll as a buffer to welcome workers grappling with the cost of gas. Wednesday, he suggested – and not for the first time – get rid of tax loopholes that benefit oil and gas.

On Thursday he will go even further, using a speech in Florida to expose his own achievements in the field of energy with a long-term strategy to keep fuel prices down.

“This is a recurring problem and it is an issue that reinforces the need for (Obama) has identified the time he was a candidate for a comprehensive energy strategy,” White House spokesman Jay Carney said. Obama advisers have made the growing demand in China and turmoil in the Middle East as factors beyond their control that affect the price of oil.

 Average price of gasoline climbed to their highest levels on record in February, hitting $ 3.53 per gallon last week, according to MasterCard SpendingPulse data.

Gasoline prices have followed crude oil prices, which have been reinforced by the threat of supply disruptions from deadlock between the West and Iran over Tehran’s nuclear program.

Some analysts believe that prices could reach U.S. $ 4 a gallon or more before the summer when driving peak demand.

POLITICAL BATTLE

These prices hurt Obama politically as much as they hurt the economy, and Republican presidential candidate Rick Santorum seized upon themselves to criticize the president for his environmental record.

 ”People are just beginning to be able to breathe a little as the economy begins to back up a bit, unemployment begins to descend,” Santorum said at a campaign event last week.

“All of a sudden they’ll be hit with the same force of wind that hit us in 2008 to the summer that led us to go into recession. All because of radical environmentalist policies of this president,” has Santorum said.

Carney rejected comments Santorum as “random statements by politicians seeking office.” Obama is the first president to preside over the growth of domestic oil production since President Jimmy Carter, also a Democrat.

Republican presidential candidate Newt Gingrich, former Speaker of the House of Representatives, promised during a debate with his rivals on Wednesday night that the country would enjoy gasoline prices at $ 2.50 a gallon if it has won the White House.

Analysts and strategists said Mr. Obama has few options to lower gasoline prices in the short term and stated that his energy policies have evolved to focus on renewable fuels to promote energy nuclear and natural gas.

“Basically, it has come a long way from the ’08 campaign. I think it reflects the pragmatism of his hand,” said Guy Caruso, a senior adviser on energy to the Center for Strategic and International Studies.

Progress or not, Obama has vulnerabilities when it comes to energy. Earlier this year, he vetoed Corp. TransCanada Keystone XL pipeline under strong pressure from environmentalists.

The president blamed the Republicans to force him to make a decision under a shorter time as the State Department said it needed to study the project.

Mitt Romney, the former Massachusetts governor and outside and on the favorites for the Republican presidential nomination, said the decision was a sign that Barack Obama wanted to please his political base more than it wanted to improve the economy.

Vulnerabilities, few options

Analysts say that even if Keystone were approved, the increase in oil supplies would not affect gasoline prices for years, but the decision is nevertheless a key flash point in the election.

 ”The juxtaposition of high gas prices and Keystone (White House) understandably nervous, and … even though both have almost nothing to do with each other on the bottom, they create a political narrative that Republicans could successfully use to paint Obama as gasoline prices anti-and pro-energy high, “one Democratic strategist said.

Politically, Obama’s vulnerability on gasoline prices could be especially deadly in the Western states he needs to win to stay in the White House.

Charles Ebinger, director of the Energy Security Initiative at the Brookings Institution, said Republican candidates could gain traction with voters in this region with emphasis on fuel costs, but they – like Obama – had little options to suggest to lower prices in the short term.

“Over there (a candidate) can get some resonance against the president talking about high gas prices,” he said.

“If someone comes to him and said,” What is your policy for Mr. Santorum, Mr. Gingrich, or anyone, to lower prices of gasoline today, “I do not think they will have a good answer.”

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Athens (AFP / AFP) - At least about 16 billion Euros (21 billion U.S. dollars) of funds from Greece have been transferred to foreign banks in the last two years, about a third were admitted to the UK, the finance minister said Friday.

Greek Finance Minister Evangelos Venizelos said that overall, the depositor has attracted65 billion Euros of Greek banks since 2009, when the country began to fall into the worst economic crisis in decades.

“Of that amount, 16 billion Euros have been taken abroad legally,” said Venizelos told parliament.

“Less than 10 percent has gone to Switzerland, and 32 percent had gone to England,” he said.

Venizelos was defending the government’s decision to support the Greek banks, which received five billion Euros in state aid under a plan of support for 2008 in exchange for shares, and more than 120 billion Euros in state guarantees as a whole.

They also receive 40 billion Euros in the euro zone bailout deal, which officials have been try for weeks.

Details of the deal is expected to be arranged next week.

“The basic element of the agreement has been prepared,” said government spokesman Pantelis Kapsis to Real FM radio on Friday.

The money will help the bank recover from a large reduction in the value of Greek government bonds they own.

Private sector creditors holding about 200 billion Euros of Greek bonds - are now very undervalued after successive downgrades respectively - were asked to accept a reduction in the value of 70 percent or more to help Greece meet schedule of debt payments due.

NEW YORK – Oil prices rose moderately on Monday (Tuesday morning GMT), after the European Union imposed an embargo on Iranian crude oil exports as part of tough new sanctions aimed at stopping Tehran from funding its controversial nuclear program.

New York’s main contract, light sweet crude or West Texas Intermediate for March delivery rose 1.25 dollars to 99.58 dollars a barrel, after the embargo which is widely expected to be announced.

In London, Brent North Sea crude for March delivery rose 72 cents to 110.58 dollars per barrel. After weeks of talks, the European Union on Monday agreed to ban oil imports from Iran as part of a joint effort with the United States to pressure Tehran to stop the alleged nuclear weapons program. Tehran is developing nuclear weapons.

The EU also froze assets of the country’s central bank “while ensuring that legitimate trade can continue under strict requirements.”
The impact of sanctions on the market is limited.

While they immediately set a ban on new oil imports from Iran, the existing contract will be abolished until 1 July, a move designed to limit the impact on countries such as Greece, which relies heavily on Iranian oil.

“… The import ban will be implemented gradually over a period of several months, which would dampen the inflationary impact of oil prices,” said Commerzbank analyst Carsten Fritsch.

Iran has sold about a fifth of crude oil to European Union countries, with Greece, Spain and Italy the main buyer. ”With the volume of imports of 450 thousand barrels daily, or nearly 20 percent of Iran’s total oil exports, the EU is the second largest oil customer of Iran,” said Fritsch.

Andy Lipow of Lipow Oil Associates said: “Hope for the European Union is that Iran will sell less crude hers, thus affecting income.”

“Meanwhile, the European Union countries that buy Iranian crude oil would need to find alternative sources,” he said, pointing to Saudi Arabia, which has increased production, and Kuwait.

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