Paris discusses release of strategic oil stocks

PARIS - Reuters

Employees of the oil refinery of Petroplus walk in front of the site in Petit-Couronne, France. AFP photo

France is in contact with Britain and the United States on a possible release of strategic oil stocks “in a matter of weeks” to push fuel prices down, Le Monde daily said yesterday, citing presidential sources.

France would join a U.K.-U.S. cooperation on a release of strategic oil stocks that is expected within months, two British sources said earlier this month, in a bid to prevent fuel prices choking economic growth in a U.S. election year.

The presidential office and the French energy ministry were not immediately available for comments.
Crude hit $128 a barrel this month, only $20 short of its 2008 peak, and is up more than 15 percent since January, largely because of sanctions against oil producer Iran. They were down 0.6 percent to $124.85 yesterday morning.

Global oil supply outages are running at more than a million barrels a day, a Reuters survey has found, helping provide justification for the United States and Britain should they release strategic reserves in a bid to cut oil prices.

“The use of strategic reserves can be justified because it is related to geopolitical tension,” a source at the presidential office was quoted as saying in the newspaper.

Fuel prices in France have also soared in the past few months to record levels, prompting an intense debate between presidential candidates one month ahead of the national election.

The rally has become a major headache for politicians around the world including U.S. President Barack Obama aiming for re-election in November and facing public anger over soaring U.S gasoline prices.