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Page added on June 30, 2011
IEA eyes oil release ‘extension’
The move would be in defiance of Opec’s criticism of the IEA’s decision last week to release 60 million barrels over an initial 30-day period to fill the gap in supplies left by the disruption to Libya’s output.
Richard Jones, deputy executive director of the 28-member agency, said he believed the release would be temporary since demand would likely drop in the fourth quarter.
“We do believe it could be temporary but we have to see how the market evolves. There could be other disruptions, for example, we are compensating for the losses in Libya,” Jones said at an event in Mexico City.
A decision on whether to extend the release could be made around the third week of July, he told Reuters.
“It will be up to our member countries – they could decide to continue it for a month or two. I don’t see that we’ll need to continue it for very long because we see demand declining in the fourth quarter, so we think it’s a temporary measure.”
Meanwhile, the IEA’s head of energy markets and security Didier Houssin said it would be up to operators to decide whether to release crude or oil products as part of emergency release, as he tried to clear up a misunderstanding over the composition of the new supplies.
5 Comments on "IEA eyes oil release ‘extension’"
DC on Thu, 30th Jun 2011 11:44 pm
You know, the amerikans and ther EU allies could easily restore Libyas oil.
Here it comes, get ready for it.
Stop creating fake ‘freedom fighters’ and destabalizing Libya in order to effect regime change.
Problem solved. Im pretty sure Libya had no problems pumping fuel until the CIA’s …’rebels’ showed up and started shooting everyone and everything in sight, right?
MrEnergyCzar on Fri, 1st Jul 2011 2:04 am
Eventually they have to take oil off the market to put it back in reserves…. this is like a dog eating its own tail to stay fed…
MrEnergyCzar
Makati1 on Fri, 1st Jul 2011 2:26 am
We dump $50 oil and replace it with $200 oil. Sounds like typical government logic to me. BTW: When we refill the reserve, it will create more demand and raise the price even more, unless we are in a world wide depression. Then all bets are off that the new oil will even be available.
Ian Cooper on Fri, 1st Jul 2011 8:19 pm
Maybe they were hoping that dumping 60 million barrels of $50 oil onto the market would bring the current price of oil down below $50 so they could sell cheap and buy high.
If so, then the US government and the IEA are even more out of touch than even I had thought.
Ian Cooper on Fri, 1st Jul 2011 8:20 pm
Sorry, I meant ‘sell high and buy cheap’, obviously.