Energy Sec says does not favor tapping SPR
CAMERON, Louisiana (Reuters) - U.S. Energy Secretary Sam Bodman on Monday said he did not favor releasing the nation's strategic oil reserves to help bring down record high crude prices.
"You could affect things for a week or a month but you're then in a very sticky wicket," Bodman told Reuters on the sidelines of an LNG event when asked about tapping the reserve.
Bodman added he had pushed oil cartel OPEC as far as he could in asking the group to increase production to help alleviate record high oil prices. U.S. light crude settled up 79 cents to a record $117.48 a barrel on Monday.
"I have done everything that I know how to do with OPEC. I have a very good relationship with (Saudi oil minister Ali al-) Naimi and all the people that work at OPEC. I wish they would open it up and issue more oil. That's my wish but I can't order them to," Bodman said.
OPEC has insisted oil markets are well supplied and that speculators are responsible for oil's rally to all-time highs this year.
Bodman said increasing regulation of speculators would not have a significant impact on oil prices.
"I don't believe so, based on the information that I have seen coming out of the CFTC that have studied the market. They believe that speculators have increased the variability but not the absolute level (of oil prices)."
Bodman spoke at ceremonies opening Cheniere Energy Inc's Sabine Pass LNG terminal on the Louisiana-Texas border near Port Arthur, Texas. He said the $2 billion terminal and pipeline will augment U.S. energy security.
"We need to diversify energy sources," Bodman told a crowd that included a number of federal, state and local officials as well as contractors involved in the construction.
(Reporting by Bruce Nichols; Editing by David Gregorio)
