US could use SPR crude if Iran cuts oil exports: Bodman

Washington (Platts)--6Jun2006

The US does not import Iranian oil but the loss of Iranian production on
the world market could impact buyers who would then seek alternative supplies.

US Energy Secretary Samuel Bodman said Tuesday that the United States
could absorb any disruption to oil supplies that might arise if Iran is
sanctioned over its nuclear program.

"We can handle it for a while," Bodman said of the potential loss of
supplies due to the dispute with the Tehran government. "If push were going to
come to shove ... there is the Strategic Petroleum Reserve. There are other
things" as well, he told reporters after a speech in Washington.

The US does not import Iranian oil, but the loss of Iranian production
from the world market would tighten global supplies, resulting in less imports
of other crudes to the US.

Bodman said the US was focused on getting Iran to commit to using nuclear
plants for electricity and not on punishing the country.

"That's how I choose to look at this," he said.

Asked if OPEC or Saudi Arabia alone could make up for a loss of Iran oil,
Bodman said the cartel has been responsive to US requests for a well-supplied
market but that the kingdom is not producing at capacity because of a lack of
buyers.

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