Big U.S. oil supply to offset Mideast Gulf disruption

WASHINGTON (Reuters) – The United States could use its large Strategic Petroleum Reserve to counter a short-term disruption in Middle East Gulf oil shipments caused by tensions with Iran, the head of the U.S. Energy Information Administration said Wednesday.

“We have substantial emergency supplies” of oil to offset problems in Gulf shipping,” EIA’s Guy Caruso told reporters. “There is no need to panic” among oil traders over possible Gulf oil shipping disruptions, Caruso said.

Oil prices shot up this week as traders worried that a dispute the West has with Iran’s nuclear program and Iran’s continued holding of U.K. Royal Navy personnel could escalate and result in disruptions to shipping through the Strait of Hormuz, which handles about a third of the world’s seaborne oil shipments.

“There is no need to panic” among oil traders over possible Gulf oil shipping disruptions, Caruso said.

Reuters