Oil release to help mitigate economic pressures: Geithner

Reuters News
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Posted: Jun 24, 2011 4:29 PM
Oil release to help mitigate economic pressures: Geithner

WASHINGTON (Reuters) - Treasury Secretary Timothy Geithner said on Friday that the International Energy Agency's decision to release government-held crude oil reserves will help mitigate economic pressures.

"We saw a very substantial sustained supply disruption. These reserves exist in part to offset those kind of disruptions," Geithner told CNBC television.

"A very good reason why you saw the world come together and do a coordinated and national release on a pretty significant scale. So I think it will help mitigate those pressures," he said.

On Thursday, the United States and other oil-consuming nations agreed to release a total of 60 million barrels of oil from reserves, half of which will come from the United States.

(Reporting by Rachelle Younglai)