|
The United States "is in close contact with the government of
Israel on extending the longstanding memorandum of
understanding" between the two countries on emergency oil
supplies, a State Department official said on the condition of
anonymity.
The agreement was first signed in 1979 by Secretary of State
Cyrus Vance and Israeli Foreign Minister Moshe Dayan after the
Iranian revolution sent shock waves of higher prices and fears
about disruptions in the Middle East through oil markets.
Under the agreement, the United States, provided it has enough
oil for its own use, will provide Israel crude for purchase. If
Israel is unable to secure transportation for the oil,
Washington will make "every effort" to help Israel secure
transit, according to the agreement.
The pact is an exception to Washington's ban on crude oil
exports that Congress passed after the Arab oil embargo of 1973
to 1974 spiked petroleum prices and led to fears of shortages.
Israel has never asked the U.S. to supply it with emergency oil.
Amid a six-year drilling boom that has led to a glut of light
sweet crude along the U.S. Gulf Coat refinery hub, the Obama
administration has been pressured by oil companies to relax or
lift trade restrictions.
The agreement between the United States and Israel was extended
in 1994 and in 2004.
(Reporting by Timothy Gardner; Editing by Alan Crosby)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
