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Oil Rallies on U.S. Assurance of No Plans for Now to Tap Reserve

Published 08/10/2021, 02:02
Updated 08/10/2021, 02:02
© Bloomberg. The Valero Energy Norco Refinery during a power outage caused by Hurricane Ida in LaPlace, Louisiana, U.S., on Monday, Aug. 30, 2021. Hurricane Ida barreled into the Louisiana coast on Sunday, packing winds more powerful than Hurricane Katrina and a devastating storm surge that threatens to inundate New Orleans with mass flooding, power outages and destruction. Photographer: Luke Sharrett/Bloomberg

© Bloomberg. The Valero Energy Norco Refinery during a power outage caused by Hurricane Ida in LaPlace, Louisiana, U.S., on Monday, Aug. 30, 2021. Hurricane Ida barreled into the Louisiana coast on Sunday, packing winds more powerful than Hurricane Katrina and a devastating storm surge that threatens to inundate New Orleans with mass flooding, power outages and destruction. Photographer: Luke Sharrett/Bloomberg

(Bloomberg) -- The U.S. Energy Department said Thursday it has no plans “at this time” to tap into the nation’s oil reserves to counter rising gasoline prices.

Nymex crude oil futures reversed an earlier decline, rising as much as 1% on the news. The department’s assurance follows a Financial Times report on Wednesday that Energy Secretary Jennifer Granholm had raised the prospect of releases from the Strategic Petroleum Reserve. It had plunged crude prices as much as 2.7% that day.

Granholm was referring to already planned congressionally mandated releases when she told a forum held by the Financial Times that “all tools are on the table” after being asked about how the Biden administration planned to confront surging gasoline prices, according to a statement Thursday by the Energy Department. 

“DOE continues to monitor global energy market supply and will work with our agency partners to determine if and when actions are needed,” the agency said in the statement. “All tools in the tool box are always under consideration to protect the American people, but there is no plan to take action at this time.”

The agency also isn’t pursuing a ban on crude oil exports, according to a department spokesperson. 

As part of a measure passed by Congress, the Energy Department has committed to sell 260 million barrels of oil by fiscal year 2027. 

(Updates oil prices in second paragraph and adds congressional mandate details in last one.)

©2021 Bloomberg L.P.

© Bloomberg. The Valero Energy Norco Refinery during a power outage caused by Hurricane Ida in LaPlace, Louisiana, U.S., on Monday, Aug. 30, 2021. Hurricane Ida barreled into the Louisiana coast on Sunday, packing winds more powerful than Hurricane Katrina and a devastating storm surge that threatens to inundate New Orleans with mass flooding, power outages and destruction. Photographer: Luke Sharrett/Bloomberg

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