World oil sup­ply ‘ se­cure’

Townsville Bulletin - - Investor -

THE world can pump enough ex­tra oil and has enough stashed in re­serve to limit price shocks from sus­tained tur­moil in the Mid­dle East, US Trea­sury Sec­re­tary Ti­mothy Gei­th­ner said.

‘‘ There is con­sid­er­able spare oil pro­duc­tion ca­pac­ity glob­ally, and we and other ma­jor economies pos­sess sub­stan­tial strate­gic re­serves of oil,’’ Mr Gei­th­ner told Congress on Thurs­day.

‘‘ If nec­es­sary, those re­serves could help mit­i­gate the ef­fect of a se­vere, sus­tained sup­ply dis­rup­tion.’’

Oil prices have surged in re­cent weeks as clashes be­tween forces of the Libyan leader Muam­mar Gaddafi and the op­po­si­tion have stran­gled sup­plies from the North African pro­ducer.

That has raised fears that higher prices, which are al­ready be­ing passed on to con­sumers, could threaten the nascent eco­nomic re­cov­ery.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.