Clinton says watching oil market 'very closely'

WASHINGTON (Reuters) - President Bill Clinton said Tuesday he was watching how the oil market reacts to OPEC's decision over the weekend to ramp up production, and considering what options his administration has to tackle high energy prices this winter.

"We're watching very closely what the market will do on prices as a result of the recent OPEC initiative and we're also examining what other options we might have in the event we have a tough winter," Clinton told reporters.

Oil prices rose as much as $2 a barrel in New York trading on Monday, after traders worried OPEC's move to raise production by 800,000 barrels per day would not be enough to replenish the world's petroleum stocks.

For some time now the Clinton administration has been considering whether to release emergency oil from the nation's Strategic Petroleum Reserve to increase supplies and lower prices.

To help the Northeast region this winter, Clinton said the Energy Department was on track to fill the 2 million barrel heating oil reserve planned for the region. "We need to make sure we do everything we can to get through this winter," he said.

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