World oil supply ‘ secure’
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.