FLASH: U.S. & Britain Agree to Release Strategic Oil Reserves …Crude Tanks

Source

"By Richard Mably	
    LONDON, March 15 (Reuters) - Britain has decided to
cooperate with the United States in a  bilateral agreement to
release strategic oil stocks, two British sources said, in an
effort to prevent high fuel prices derailing economic growth in
a U.S. election year.  	
    A formal request from the United States to the UK to join
forces in a release of oil from government-controlled reserves
is expected "shortly" following a meeting on Wednesday in
Washington between President Barack Obama and Prime Minister
David Cameron, who discussed the issue, one source said. 	
    Britain would respond positively, the two sources said.	
    "We regularly consult with the British on energy issues and
any discussion that we had was in that context. We will continue
to monitor the situation and consult with them and others," an
Obama administration official said.	
    Rising world oil prices, up to $125 a barrel for Brent crude
, have pushed U.S gasoline prices up sharply this year
and threaten to choke U.S. economic recovery ahead of Obama's
bid for re-election in November.   	
     Details of the timing, volume and duration of the emergency
drawdown have yet to be settled but a detailed agreement is
expected by the summer, one of the sources said.	
    Other countries may also be approached by Washington to
contribute, a further source said, Japan among them.      	
    Previous emergency oil drawdowns, the latest last year, 
have been coordinated by the 28-member Paris-based International
Energy Agency (IEA) to meet its mandate to cover substantial
supply disruptions on the world oil market. Libyan oil
production was closed for much of last year during civil war...."