Friday, Sep 07, 2012
By Summer Said and Benoit Faucon
DUBAI--Gulf oil producers Friday joined Iran in dismissing any talk of U.S. oil stockpile release as politically motivated, not market driven, a rare display of agreement between both sides.
New speculation emerged Thursday that the U.S. government may tap into its emergency oil stockpiles, after prices rose back above $110 a barrel in recent weeks.
"Gulf countries, including Saudis, see no need for stock release and these are just a psychological or political statements," a Gulf oil official said.
Earlier Friday, Mohammad Ali Khatibi, Iran's governor at the Organization of Petroleum Exporting Countries, said: "My guess is that there is a relation between the release and elections," he said. U.S. President Barack Obama is up for re-election in November and the issue of high oil prices has emerged as a contentious one during his campaign.
"Maybe they [the U.S. government] will manipulate the prices," Mr. Khatibi said. "Due to some election, they may be trying to use it [an emergency release] as a tool to influence voters."
OPEC members, including those from the Gulf, said market fundamentals don't warrant a U.S. stockpile release because there is no shortage of oil. Many also expressed skepticism on whether the U.S. would undertake such move.
The Petroleum Policy Intelligence newsletter Thursday described a stock release as "imminent," saying that "as far as the U.S. is concerned, the decision appears to have been taken."
A White House spokesman said last week that "all options remain on the table" about drawing from stockpiles, as it did last year to fill the gap left by the absence of Libyan barrels due to the battle to overthrow Col Moammar Gadhafi.
Yet, the U.S. could face the opposition of the International Energy Agency, which normally coordinates such moves by consumers and has described the oil market as adequately supplied.
Another Gulf oil official also said a stockpile release would fail to sustainably dent prices.
"The oil price is up because of [geopolitical] tensions, not because there is not enough oil," the official said.
Write to Summer Said at Summer.said@dowjones.com
Write to Benoit Faucon at benoit.faucon@dowjones.com
(END) Dow Jones Newswires
07-09-12 1418GMT
