WASHINGTON, (Reuters):
THE WHITE House said on Wednesday it had no plans at this time to tap the government's emergency oil stockpile to boost supplies during Venezuela's general strike, rebuffing requests by some US-based oil companies for assistance.
"The Strategic Petroleum Reserve is, by design, to be used for severe disruptions of the markets. That is a type that has not occurred. Obviously we're going to continue to monitor the situation very closely...but at this time we do not think a release is necessary," White House spokesman Ari Fleischer told reporters.
Venezuela is the world's fifth largest oil exporter and the fourth biggest US oil supplier.
Despite efforts by Venezuelan President Hugo Chavez to break the general strike, oil shipments have been virtually paralysed. Workers are trying to force Chavez to resign or agree to early elections.
Citgo, the US gasoline refining and marketing subsidiary of Venezuela's state oil company, made a "formal request" for Strategic Petroleum Reserve assistance late on Monday but would not provide details on the amount of crude it was seeking from the stockpile.
The company said its refining operations have not yet been affected by the lack Venezuelan oil exports.
"We never expected the strike to last this long," said a Citgo spokeswoman. "We're just at the point where we're seeing some supply issues at the end of December."
Instead of lending energy companies oil from the reserve to boost supplies, the Energy Department is allowing firms to delay delivering about 8 million barrels of crude to the stockpile.
Fleischer said this was "a way of providing more energy into the marketplace for consumers" while Venezuelan crude exports are disrupted.
Traders are worried the lingering strike will take a bite out of US oil inventories.
US oil prices climbed above US$31 a barrel in New York trading on Wednesday, the highest level in 12 weeks, on US doubts of Iraq's arms declaration.
Chavez's government on Wednesday authorised the military to commandeer private ships, trucks and planes to distribute fuel and food.
The Bush administration has backed calls for a referendum on whether Chavez should remain in power, saying it was the only peaceful way out of the major oil-producing country's worsening political turmoil.
The emergency US oil stockpile, created by Congress in the mid-1970s after the Arab oil embargo, currently holds 599 million barrels of crude.
The Bush administration is in the process of filling the reserve to its capacity of 700 million barrels by 2005.
