Feds reassure on oil supply disruptions

WASHINGTON (CNN) - The Federal government says disruptions to the fuel supply caused by Hurricane Gustav will likely be "localized and temporary."

he reassurance came in a briefing document provided to reporters Sunday by the U.S. Department of Energy. The document says while Gulf oil fields produce 26 percent of U.S. total crude oil, the nation's Strategic Petroleum Reserve is filled to record levels and can be released at sufficient volume to make up for any Gustav-related production disruptions.

As of Saturday, the government reports, 96 percent of production in the Gulf region had been halted until the storm passes. Most oil companies have been evacuating workers from oil rigs over the last few days.

Operations at three of the four petroleum reserve sites have been suspended, the DOE said, until the storm passes.

Meanwhile, crude oil prices jumped in a special trading session at the New York Mercantile Exchange, at 5:25 p.m., the price was up $1.61 a barrel.