US holds back on tapping reserve to stabilize markets
Traders kept guessing on whether Washington will tap underground oil stockpiles
The US is taking a waitand-see approach on whether to tap its Strategic Petroleum Reserve to stabilize oil markets after the attacks on Saudi Arabia’s oil infrastructure, Energy Secretary Rick Perry said on Tuesday.
US President Donald Trump said on Monday it looked like Iran was behind the attacks on Saudi oil plants but stressed he did not want to go to war. The attacks sent oil prices soaring and raised fears of a new Middle East conflict.
Washington said over the weekend that if necessary it would tap the SPR — the world’s biggest supply of emergency crude oil, which contains roughly the amount the US consumes in a month. It has not done so yet. “With regard to energy markets, the president has directed me to release oil from the Strateplied.”
ENERGY
gic Petroleum Reserve if that is needed to offset any potential disruptions,” Perry told reporters on a visit to Vienna.
“But looking at the supply numbers we are confident that the markets remain well supAsked whether the US might not draw down the SPR at all, Perry said: “Oh absolutely. ‘If needed’ is a pretty flexible term.” US Vice President Mike Pence said on Tuesday the United States was evaluating evidence on the attacks on Saudi oil facilities and stands read to defend its interests and allies in the Middle East. If Iran conducted Saturday’s attacks to pressure Trump to back off his sanctions regime against Tehran, they will fail, Pence said. Tensions between Iran and the United States and its allies have threatened to boil over since May last year when Trump abandoned a 2015 nuclear deal and began reimposing sanctions in its campaign of “maximum pressure.”