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US reserves right for unilateral oil release

Abraham told reporters that while Washington would first consult with the Paris-based International Energy Agency (IEA) a release need not be part of a coordinated drawdown.

"We made it clear that we would engage in consultation as we belong to the IEA for a reason," said Abraham. "But certainly the US always reserves its right to make its own ultimate decision of what it's going to do with our reserves."

Abraham was speaking after Japan said it was considering a unilateral release from emergency stocks in the event of war.

The Nihon Keizai Shimbun newspaper said that the Japanese government planned to sell about 300,000 barrels per day (bpd) of crude oil from state reserves if US-led forces attack Iraq.

The Japanese government would not comment directly on the report but said it was unlikely Tokyo would act outside a coordinated action by the IEA.

Abraham repeated that Opec producers would be given first chance at filling any supply disruption during war, before it considering releasing its emergency stocks.

"In the first instance markets should work and producers should be given a chance," he said. "I have every confidence that they are sincere in the commitment they have made."

Leading Opec producer Saudi Arabia on Thursday reiterated a pledge to pump more oil in the event of war but there are doubts as to whether Riyadh has enough spare capacity to fill an outage.

Iraq's 2.5 million barrels a day is likely to shut and Kuwait may have to close up to 1.7 millionbpd as a precaution during war.

The IEA in a monthly report on the oil market outlook estimated that Opec in total only has 900,000bpd spare, with 400,000bpd in Saudi Arabia.

Abraham said: "What is important is that the producers have said they will move quickly and decisively to meet any shortfall and the IEA members, those with strategic reserves have made clear that we will consult with each other, monitor the situation and are prepared to act quickly."