U.S. to Postpone Oil Reserve Shipments

The Energy Department will delay deliveries to its emergency oil reserve in hopes of easing the recent surge in fuel prices, Secretary Bill Richardson said. The administration has been under pressure to act as oil prices have edged close to $30 a barrel from a low of less than $12 a year ago. The department will renegotiate contracts to postpone delivery on 5 million barrels of oil for the Strategic Petroleum Reserve in Louisiana and Texas, he said. Many economists question whether the move would have much of an impact on prices. The U.S. reportedly consumes about 18 million barrels of oil a day. On Tuesday, Richardson had ruled out releasing oil already in the emergency reserve to influence oil markets, saying the reserve should only be used to deal with supply emergencies. No withdrawals from the reserve are planned, officials said. Richardson also said he will closely monitor heating-oil markets. Heating-oil and diesel fuel prices also have risen rapidly.