IEA says no need to send emergency gasoline to U.S.

By Tom Doggett

WASHINGTON (Reuters) - Even though U.S. gasoline inventories are the lowest since 1967 because of disruptions caused by the recent hurricanes, the head of the International Energy Agency said on Thursday there still was no need for IEA members to release emergency fuel supplies to the U.S. market.

"We don't have to mobilize," IEA Executive Director Nobuo Tanaka told Reuters in an interview. "The market is now taking care of the current situation," he said.

Tanaka said the U.S. Energy Department had not asked the IEA to release fuel supplies in response to the four-decade low in U.S. inventories. Energy Secretary Sam Bodman confirmed as much on Thursday, saying the U.S. supply crunch will ease over time.

"We have consulted very closely with the Department of Energy on the current situation," Tanaka said, adding that the U.S. oil industry was "much better prepared" to handle the supply disruption caused by hurricanes Gustav and Ike than it was when Hurricane Katrina hit three years ago.

He pointed out that high U.S. gasoline prices were encouraging European refiners to export more motor fuel to the U.S. market, where they can make a bigger profit.

Tanaka acknowledged that U.S. gasoline inventories were very low and said IEA members were ready to help, if the supply problem becomes much worse.

"If the disruption continues in a very serious level, we definitely will use our (petroleum reserves) ... activate them, if necessary," he said.

The five Gulf Coast oil refineries still shut by Ike represent about 500,000 barrels a day in lost gasoline production.

With refineries shut, oil companies are digging into their inventories. U.S. gasoline stocks fell by 5.9 million barrels last week to just under 179 million barrels, down almost 19 million barrels from a year ago, according to the Energy Department.

That leaves the United States with the lowest fuel stocks since 1967, when America's gasoline demand was just 5 million barrels a day, almost half its current daily consumption of 9 million.

(Reporting by Tom Doggett; editing by Matthew Lewis)