EU warns of low oil reserves in member states

The European Union (EU)'s oil aid to the US in the wake of hurricane Katrina could drain some member states' stocks below agreed minimums, an EU high-ranking official warned on Thursday.

According to a 1968 agreement, EU member states promised not tolet oil reserves fall below 90 days' worth of consumption.

"Some will almost certainly go below that figure", said the EU executive European Commission's energy department head Helmut Schmitt von Sydow.

He also revealed that while member states are not planning drastic action to cut fuel consumption in the short term, ideas such as a pan-European no-car Sunday or shutting airports has beenput forward as potential emergency measures.

The 15 old EU members, as well as Hungary, is currently releasing 2 million barrels of oil a day onto world markets to ease the pressure caused by last month's storm in the Gulf of Mexico.

The hurricane Katrina stopped the work of some US oil rigs and refineries and helped push oil prices to 70 US dollars a barrel.

Average old EU members and Hungary reserve levels stood at 121 days for petrol, 104 days for diesel and 203 days for heating oil at the end of August.

But the Commission now fears that the 90 day red line could soon be breached as European energy consumption rises with the onset of winter.

Belgium and Luxembourg are reportedly among the at-risk countries.

Source: Xinhua