IEA says too early to decide on oil stocks release

PARIS (Reuters) – The International Energy Agency (IEA) is waiting for oil companies to assess the damage caused by Hurricane Gustav on Tuesday before it decides whether to release oil stocks, the energy adviser to rich nations said. Oil prices plunged on Monday as Gustav weakened to a Category 2 hurricane with 110 mph (177 kph) winds shortly before making landfall, easing fears of serious oil disruption. “It’s too early to talk about damages in the Gulf of Mexico,” Aad van Bohemen, head of the emergency planning and the preparation division at the IEA, told Reuters on Monday.

The agency, which co-ordinates emergency measures in times of oil supply disruption, released oil products stocks in 2005 when hurricanes crippled U.S. oil operations in the area.


“But tomorrow the oil companies will go back to their platforms and assess the damage and then we will discuss with the U.S. Governemnt about how serious this is, if the damage can be repaired quickly, yes or no, and see if there’s a need for the IEA to do anything,” van Bohemen said.

He added that it could take the IEA another one to two days before deciding whether or not to release oil stocks.

Reuters