-- There are signs of tightness in products supplies, says IEA head
-- Monitoring market situation, will respond if necessary
-- Says members free to unilaterally release emergency stocks
-- Calls high oil prices a cause of concern
NEW DELHI--Global crude-oil markets are reasonably well-supplied, but there are signs of tightening in refined fuel products, the head of the International Energy Agency said Tuesday.
"There is, not at this moment, any disruption in supply," Executive Director Maria van derv Hoeven told reporters on the sidelines of an industry conference when asked if the IEA were considering releasing stockpiles. "We are monitoring the markets. We are in touch with our members. And we stand ready to respond as necessary."
Oil markets are speculating that the IEA may release stockpiles as oil prices are heating up again on fears Middle-East supplies could be suspended if tensions with Iran boil over, potentially affecting the oil transport choke point in the Strait of Hormuz, or Saudi Arabia's crucial crude conduits are attacked.
Ms. Hoeven said high crude-oil prices are a cause of concern.
The Group of Seven leading industrialized economies last week appealed to the world's major oil producers to boost output but stopped short of coordinating a release of emergency stockpiles despite mounting worries about the damage from rising fuel costs on already weak economies.
Members of the Paris-based IEA last released emergency oil stocks in June 2011 to offset the loss of Libyan oil exports during its civil war, at a flow rate equivalent to around 2.0 million barrels a day.
Ms. Hoeven said the 28 member nations were free to unilaterally release emergency stockpiles.
"There are precedents for unilateral release by member IEA countries, Ms. Hoeven said. "It is not IEA's role to intervene in domestic sovereign decision by member countries about stocks," provided they meet their obligations on maintaining stockpiles, she added.
Although exports from Iran plummeted in July as a result of western sanctions on Tehran, the drop was offset by higher production by other OPEC members like Saudi Arabia and a rise in production by the U.S. and Canada from tight deposits like oil sands, she said.
The IEA sees tightening in the refined-fuel market due to constraints in refining capacity because of issues like a recent fire at Venezuela's Amuay oil refinery, she said.
The refinery, Venezuela's largest with a production capacity of 645,000 barrels a day, last month was hit by a deadly explosion that killed more than 40 people and set several storage tanks on fire.
Write to Rakesh Sharma at rakesh.sharma@dowjones.com
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