US ready to release more oil from reserves

Gasoline storage tanks in Fairfax, Virginia © AFP/File Paul J. Richards

AFP

WASHINGTON – The United States said Thursday it would release more oil from its reserves if necessary, after leading a global drawdown of 60 million barrels due to supply disruptions in the Middle East.

“The US stands ready to do more as is necessary to address this issue,” a senior US official told reporters on condition of anonymity, adding that Washington would review the supply situation after one month.

International Energy Agency countries said earlier Thursday that they would draw down 60 million barrels from strategic oil stocks to make up for the loss of Libyan output.

The drawdown, only the third in the history of the IEA, was intended to complement “expected increases in output” by the major oil producing countries, the IEA said in a statement.

The US Department of Energy said that of the total, it would release 30 million barrels from its stocks, which at 727 million barrels were at a historic high.

© AFP — Published at Activist Post with license