THE International Energy Agency’s (IEA’s) executive director, Nobuo Tanaka, said in Beijing at the weekend the agency would monitor energy markets after its members’ decision to release oil stockpiles and would act again if needed to stabilise prices.
"We are waiting for market reaction and assess the situation and decide further action after 30 days," Mr Tanaka said on Saturday.
"If necessary we’ll continue," he said.
The US and 27 allies said they would release oil stockpiles through the IEA for the third time in more than three decades, over the next 30 days, as the war in Libya chokes global supplies. The release of 60-million barrels, or 2- million barrels a day of oil over the next month from the end of next week, will be co-ordinated by the IEA, the agency said.
The move comes 15 days after the Organisation of Petroleum Exporting Countries (Opec) failed to reach agreement on production increases at a meeting in Vienna.
The deadlock was mainly between Saudi Arabia and Iran with Venezuela. After the Opec meeting, Saudi Arabia said it would increase output to meet the needs of the international market.
Crude oil fell to a four- month low in London and was little changed in New York on Friday after the IEA’s announcement on June 23. Futures in London tumbled 8% in two days on the plan to respond to the drop in Libyan exports.
Brent crude fell to a four-month low of $105,22 a barrel.
The US will provide 30- million barrels of the IEA release, European members will supply about 20- million and Asian nations the remainder. Iran on Saturday condemned the release as political interference in the market. Reuters, Bloomberg
