The White House says the US Department of Energy is considering requests from oil refineries on the Gulf of Mexico to borrow oil from the US Strategic Petroleum Reserve because of Hurricane Ivan.
'We've always said that the Strategic Petroleum Reserve was set up to protect against physical disruptions of oil supplies, such as national emergencies or natural disasters, and not to manipulate prices or for political purposes,' spokesman Scott McClellan told reporters.
Stocks of US oil took a hit from Hurricane Ivan last week, tumbling to their lowest levels since February, according to government and industry figures released on Wednesday that sent oil prices soaring above $48 a barrel in New York.
But prices fell back today, with US crude down 30 cents to $48.05 a barrel. In London, benchmark Brent North Sea crude oil for delivery in November dropped 28 cents to $44.65 a barrel.
