Business & Finance

No Release of US Oil Reserves: G20 Sources Said

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The United States did not openly express intent to release the nation’s oil reserves even in the face of mounting global oil prices, a source in the Group of 20 citing details of the group’s meeting this weekend.
Two people privy to the details of discussions said that finance officials had tackled the effect to global economy of from the continued rise of oil prices as its price rose above $125 per barrel this week. But the US did not call for the release of the nation’s strategic oil reserves in the meeting, the same sources said.
This information is in contrast with what Treasury Secretary Timothy Geithner said on Friday that the United States is considering the release of its oil reserves over fear of the volatile prices of oil. The ongoing oil price hike is caused by the mounting tension between Iran and the West because of the former’s nuclear weapons program.
The United States, as well as other countries, holds oil reserves that can be released in case of emergency drop in oil supplies. The reserve per country differs, with some lasting a few days to up to a few months, as in the case of oil rich countries.
An unofficial draft of the minutes of the G20 meeting said that rising oil prices were a threat to global economy. It also added that the current situation should be viewed cautiosly.
“The communique says that there are some positive signs in the global economy, coming especially from the U.S. economy, but they are tentative,” a G20 official said.

Jon Mills

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