U.S. to delay buying strategic-reserve oil

The Department of Energy will delay purchasing oil to fill the nation's Strategic Petroleum Reserve until after the winter-heating season, The Wall Street Journal reported on Tuesday.

President George W. Bush had ordered the department to halt filling the emergency crude stockpile ahead of the summer-driving season, when gasoline prices edged up to nominal highs, according to the report.

Last year, the United States sold crude from the reserve -- a federal oil depository of 727 million barrels designed to cushion the country against supply disruptions and subsequent petroleum price rises -- to meet emergency demand in the wake of a destructive hurricane season. In June, the reserve held almost 688 million barrels of oil.

Spokesman Craig Stevens said on Monday the department had agreed to hold off collecting 1.7 million barrels owed to it from oil companies until the second quarter of 2007.

Given that the department is "satisfied with the (reserve's) current level," and that it was wary of affecting the market ahead of the high-demand winter-heating season, "we have no plans currently to use the 600 million dollars (from last year's oil sale) to fill the reserve."

He said if the department decides to start buying crude, it would be done during a period of months to minimize the impact on the market.

Source: Xinhua