U.S. to suspend shipments to petroleum reserve in July

NEW YORK (CNNMoney.com) - The U.S. government said Friday that it will halt deliveries to the Strategic Petroleum Reserve in July. In quick response, oil prices retreated from a record high near $128 a barrel.

The U.S. Energy Department announcement comes several days after Congress voted to direct the Bush administration to stop shipments to the emergency reserves.

The Energy Department decided not to purchase oil from July to December to protect against liability for unfulfilled contracts should the bill become law, said Megan Barnett, a spokeswoman for the department.