Friday, February 24, 2012

U.S. weighs release of oil reserves, world frets about Iran

(Reuters) - The United States is considering a release from its strategic oil reserves, Treasury Secretary Timothy Geithner said on Friday, acknowledging the harm that supply disruptions from Iran could have on the global economy.

Rising tensions between Iran and the West over its disputed nuclear program have fueled a rise in oil prices, pushing benchmark Brent crude above $125 a barrel on Friday.

"There is a case for the use of the reserve in some circumstances and we will continue to look at those and evaluate that carefully," Geithner said on CNBC television.

"Obviously Iran can do a lot of damage to the global economy," Geithner said. "We are working very carefully to try to minimize that risk, make sure there are alternative sources of supply from Saudi Arabia and others to help compensate for reduced exports from Iran." Read More