Geithner upbeat despite oil shock

WASHINGTON, March 4 (UPI) -- The U.S. and other major economies have enough strategic oil reserves on hand to cope with the crisis in the Middle East, the U.S. treasury secretary said.

Political turmoil in the Middle East and North Africa, particularly Libya, helped push oil and gasoline prices to post-recession records. Gasoline prices in parts of the United States have topped $4 per gallon with British drivers paying as much as $10 per gallon.

U.S. Treasury Secretary Tim Geithner in written testimony before the Senate Foreign Relations Committee said Washington was monitoring the situation "closely."

"But it is important to note that there is considerable spare oil production capacity globally, and we and other major economies possess substantial strategic reserves of oil," he wrote. "If necessary, those reserves could be mobilized to help mitigate the effect of a severe, sustained supply disruption."

He added that the Treasury Department supported measures that would limit price manipulation in the energy market through increased transparency and oversight.

"In the United States, rising gasoline prices have left consumers with less money to spend but underlying inflation across all goods and services is still modest," added Geithner.