Sept. 2 (Bloomberg) -- The International Energy Agency is considering releasing 2 million barrels of oil a day over 30 days from strategic reserves to ease shortages in the U.S. after Hurricane Katrina, German Chancellor Gerhard Schroeder and French Industry Minister Francois Loos said.

Such an ``internationally coordinated measure should be used to achieve a lowering of oil prices,'' Schroeder told a news conference in Berlin. He appealed to oil companies to pass on reductions to consumers. France would contribute about 92,000 barrels a day in ``solidarity with the American people,'' Loos said in a statement.

The move would be the second coordinated release in the agency's 31-year history. The group controls 1.4 billion barrels that can be used in emergencies, according to its Web site. The only time the reserves have been used was during the Persian Gulf War in 1991.

``We are in consultation with all of our member countries right now,'' Gundi Gadesmann, a spokeswoman for the Paris-based IEA, said in an interview after Schroeder's comments. ``I really can't comment on whether we will ask for a release yet or not.''

A decision to release reserves would be made by IEA members jointly. Schroeder has no control over the decision. The German chancellor is seeking re-election on Sept. 18, and a poll released today showed his Social Democrats trailed the opposition Christian Democratic Union 43 percent to 32 percent.

Crude Falls

Schroeder didn't specify what sort of supplies could be released. The U.S. market needs more refined products gasoline than crude oil because of damage done to refineries, exacerbating refining bottlenecks that had been in place before the hurricane.

``Long before we ever heard the word `Katrina,' we knew the U.S. had a refining problem,'' said Robert Esser, who is in charge of long-term supply forecasting for Cambridge Energy Research Associates, a consulting firm founded by Daniel Yergin, who won the Pulitzer Prize for ``The Prize: The Epic Quest for Oil, Money & Power.'' ``Gasoline stocks would make a big difference.''

European governments control a greater proportion of refined products, including gasoline, than crude oil. The continent's OECD members collectively held 161 million barrels of crude oil and 207 million barrels of oil products as of June 2005, according to the IEA. That includes government-owned stockpiles and organizations holding stocks for emergency purposes.

Gulf's Imports

The Gulf of Mexico gets more than half of U.S. oil imports and is home to about 50 percent of the nation's refining capacity. Power cuts, flooding and a lack of workers are hampering refiners' efforts to inspect plants and restore output. The hurricane idled more than 1.77 million barrels a day of capacity, or 10 percent of the nation's total, U.S. Energy Department data showed.

``If there's a need for gasoline, it would be gasoline. If there's a need for distillates, it would be distillates. If it's crude, we will release crude,'' Claude Mandil, executive director of the IEA, said in an interview Thursday. ``At this point, it's too early to make a decision; we need to assess the damage.''

Crude oil fell $1.42, or 2 percent, to $68.05 on the New York Mercantile Exchange after Schroeder's comments. Crude hit a record $70.85 a barrel this week on concern Katrina's damage would take months to repair. The hurricane idled 11 percent of U.S. refining capacity. The U.S. has already released oil from its own reserves.

``It's possible with more oil coming into the market organized by the IEA, it's going to push prices a lot lower,'' said Kevin Blemkin, a broker with Man Financial in London. ``The question is how quick this can come to fruition. Oil products is obviously where we've got the main problem.''

The IEA, an adviser to 26 industrialized nations, requires governments to hold 90 days of oil reserves under an accord with the Organization for Economic Co-operation and Development. Access to the reserves is restricted to emergencies.

Schroeder said IEA members, which include the U.S., will agree how much of their reserves they will each release. He said he expected worldwide agreement for the measure.

To contact the reporters on this story: Claudia Rach in Berlin at crach1@bloomberg.net.

Last Updated: September 2, 2005 11:45 EDT