U.S., Europe set to release oil reserves

U.S. expects to receive 2 million barrels per day from stockpiles

WASHINGTON – The Bush administration, in conjunction with other oil consuming nations, expects to release 2 million barrels a day of crude oil and refined gasoline from U.S. and international emergency government reserves to counter supply disruptions caused by Hurricane Katrina, administration officials said Friday.

The move reflects a much broader use of the U.S. strategic petroleum reserves and opens the way for millions of gallons of gasoline imports from European government stockpiles to try to stem soaring gasoline prices at home.
A decision was expected to be announced by the Paris-based International Energy Agency later Friday about the coordinated release of crude and refined products by agency members, said an administration source speaking on condition of anonymity because of the discussions on procedures for the release were still under way.

The release would total 2 million barrels a day, with the U.S. contributing 44 percent of that amount in crude from the Strategic Petroleum Reserve. Administration officials hope the other 56 percent would be in the form of gasoline now in European government stockpiles.

Associated Press