Article: Administration rejects oil-for-cash SPR plan. (Strategic Petroleum Reserve)

WASHINGTON -- Saudi Arabia is expected to fulfill its $13.5 billion financial commitment to Operation Desert Storm, the Bush administration says, which makes unnecessary a Democratic proposal to accept oil for the U.S. Strategic Petroleum Reserve in lieu of cash payments.

Key House Democrats suggest that Saudi Arabia could contribute crude oil to the U.S. Strategic Petroleum Reserve in partial payment of its financial obligation for Operation Desert Storm.

Saudi and U.S. government sources say two payments of $3.75 billion each, one in May and the second in June, are to be wired to the U.S. Treasury through the Federal Reserve Bank of New York, with the ...

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