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In the war of wills over Iran s nuclear program, strategic oilreserves are a crucial weapon for the U.S. and others trying tokeep Iran from developing nukes. Iran can t win by embargoing itsown oil because it needs to export more than its customers need toimport. The existence of strategic oil reserves in the U.S.,Europe, Japan, China, and elsewhere was a key consideration forPresident Obama in his March 30 decision clearing the way for sanctions on banks that aid the Iranian oil trade. But it s important to save strategic oil reserves for whenthey re really needed. If reserves are drawn upon every timeprices go up, eventually they will be gone, leaving no buffer todeal with genuine emergencies. Trouble is, there s increasing political pressure to tap intostrategic reserves now to lower gasoline prices. On March 29,French Prime Minister Francois Fillon told French radio thatprospects of an accord between the U.S. and Europe on tappingstrategic reserves are good and consumers can reasonably expect a release. To understand the situation better, I called Sarah Emerson,president of Energy Security Analysis, a market-research andadvisory firm in Wakefield, Mass. Emerson said she thinks there sno need to release strategic reserves now because the world iswell-supplied with oil. Production is up, thanks to new fields inthe U.S., Canada, Brazil, the former Soviet Union, and Africa, shesays, while consumption has actually fallen from a year ago in theU.S. and Europe and is growing only tepidly in the developingworld. Emerson says that reported commercial inventories remain low, butare growing. And she says inventories are understated because thereis unreported oil at the site of production and on ships. All other things being equal, I think the president s right toconclude that the world can withstand the hit to supplies iftougher sanctions reduce Iranian oil exports, Emerson said. It wouldn t be slam dunk easy, she said. It would take acouple months for more oil from Saudi Arabia and elsewhere tofill the gap. But she said releases from strategic reserves mightnever be needed, because Iran could be forced to the negotiatingtable within a matter of months. They can compromise or lash out.Lashing out isn t going to do anything for them. We are high quality suppliers, our products such as China Hyundai DVD Player , Automobile DVD Players for oversee buyer. To know more, please visits BMW Car DVD Player.
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