US moves forward with more SPR fills 

despite $41-plus crude price

Washington (Platts)--22Jul2004

Even with US oil prices over $41/bbl, the US government remains committed to
filling its Strategic Petroleum Reserve to capacity, announcing Thursday its
intention to take some 17-mil bbl of royalty oil produced from federal
offshore leases in the Gulf of Mexico and deliver it into the emergency
stockpile beginning in October. "There is no change in the Administration's
policy: The SPR and the oil it contains is an important national security
resource for the nation," US Department of Energy spokeswoman Jeanne Lopatto
said. "As directed by the president, DOE will continue to fill the SPR to its
capacity." She declined to comment on whether DOE had considered halting the
program in light of surging oil prices. Light, sweet crude for August delivery
jumped about 80 cts Thursday, trading at around $41.38/bbl on the New York
Mercantile Exchange as of 2:30 EST.

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