Global Crude Oil Market Is Adequately Supplied, IEA Says
The global oil market is adequately supplied and doesn’t require the release of emergency stockpiles, according to the International Energy Agency.
The agency is monitoring the market and “stands ready” to respond if there’s a major supply disruption, the Paris-based adviser to 28 energy-consuming nations.
“The IEA is obviously concerned about the harmful effects of high oil prices on the global economic recovery,” Greg Frost, a Paris-based spokesman, said in an e-mailed statement. “Prices at these levels cause hardship both in IEA countries and especially emerging economies.”
The IEA coordinated the release of 60 million barrels of crude and oil products in June 2011 to offset lost supplies from Libya, where an uprising against Muammar Qaddafi almost halted the country’s oil exports. Brent fell 8 percent in the two days after the announcement of that intervention, the third use of reserves in the agency’s history.
Brent has climbed 12 percent since July 1 amid unrest in Egypt, declining supply from Libya and the escalating conflict in Syria. Contracts of the North Sea benchmark, used to price more than half of the world’s oil, for October delivery rose to a six-month high yesterday on the ICE Futures Europe exchange in London. It was down 1.2 percent at $115.18 at 2:29 p.m. in New York.
Libya’s oil production fell to one-eighth of its capacity as protests over pay and allegations of corruption spread to fields operated by Eni SpA (ENI) and Repsol SA, according to executives at the state oil company. Output from the North African OPEC nation slumped to about 200,000 barrels a day, compared with 640,000 in August and its optimal capacity of 1.6 million, National Oil Corp. Chairman Nuri Berruien said in an interview Aug. 27 from Tripoli.
Tensions in the Middle East have fanned concern that shipments from oil-producing nations may be disrupted. The region accounted for 35 percent of global oil output in the first quarter of this year, according to IEA data.
The Organization of Petroleum Exporting Countries, responsible for 40 percent of world supplies and whose members include Libya, declined to comment yesterday on the impact of the supply disruption.
To contact the reporter on this story: Lananh Nguyen in London at email@example.com
To contact the editor responsible for this story: Stephen Voss at firstname.lastname@example.org