US to free crude stock, prices below $70

“The department continues to review other requests as they come in,” Bodman said in a statement. “This administration has been clear that SPR is a national asset that can be used in times of supply disruption, like a natural disaster.”

The hurricane has shut down the vast majority of oil and natural gas production in the gulf and severely hampered refineries all along the coast. Energy analysts and local officials have said flooding and the lack of power will make it difficult for the industry to resume regular operations for a week to 10 days at the very least.

Energy analysts said while releasing oil from the reserve would help, it may do little to increase the supply of gasoline in the short run because it would take refiners at least another week and some even longer to start processing crude oil again. The government has said at least nine refineries in the gulf coast have been completely shut down and several others have reduced their production.

“All of the crude in the world does not turn the crude into product, it still has to be refined,” said Thomas Bentz, an energy analyst at BNP Paribas in New York. “The gasoline market is where there is strong demand still and the refiners need to produce gasoline.”

Wholesale gasoline prices, which climbed for the third straight day, were up 10 cents a gallon, to $2.57. — NYT

Oil cos up ATF prices

NEW DELHI: Domestic oil companies have raised the prices of aviation turbine fuel (ATF) by 5 per cent in line with the surge in global crude oil prices, which crossed the $70 a barrel mark on Tuesday. Major domestic airlines including Jet Airways and Air Sahara said they were considering imposing a fuel surcharge a decision in the next three to four weeks. Although this would also affect the operations of Indian Airlines, it chose to remain mum about a hike.

ATF will now be costlier by about Rs 1,600 a kilolitre with effect from midnight of Wednesday/Thursday, said an IOC official.