“A drawdown of the US emergency oil stockpile is looking increasingly likely as economic and political pressures converge to enable the Obama administration to justify a release, analysts said Friday.
“But if the White House does decide to proceed with a sale from the Strategic Petroleum Reserve, volumes are unlikely to be anywhere near the 180 million barrels suggested in some media reports, they added.
" ‘The Obama administration can cite a number of reasons to go forward with an SPR release, which is why we conclude that action on this front is likely,’Washington-based PFC Energy said.
“Gasoline prices of close to $4/gal in some US cities within three months of the November presidential election provides motivation for a release, although this might be difficult to justify to a cynical public, PFC said.
" ‘As a fig leaf, the president could cite the near 1.5 million b/d of disruptions to global crude oil production this year,’ PFC said. ‘He could also point to the geographical mismatch between America’s rising crude producing regions and those where refined products are needed, citing the need for the government to temporarily bridge the gap.’ “