BBC News Online: Business

Bush boosts oil stocks

President Bush feels oil is crucial to national security

The move means the SPR - billed as the nation's first line of defence against an interruption in oil supplies - will be topped up to its full level of 700 million barrels.

"The Strategic Petroleum Reserve is an important element of our nation's energy security," President Bush said in a statement.

The move had been widely trailed in advance, and rumours of a top-up had increased since 11 September, when fears over oil supplies became more acute.

A White House energy report released in the spring called for a review of whether to add oil to the SPR.

Prices bounce

The decision had an immediate effect on oil prices, which have sagged since 11 September, mainly on worries over falling US demand.

A barrel of Brent North Sea crude rose 54 cents to 20.95 dollars a barrel, while December-dated light sweet crude futures picked up 52 cents to 21.75 dollars a barrel in New York trading.

The decision comes at a crucial time: oil ministers from the Opec production cartel are assembling in Vienna to hammer out an agreement on output quotas.

Most analysts expect Opec to cut its quota by up to 1.5 million barrels per day.