IEA Hints at Oil Stock Release Unless OPEC Acts, CGES Says

JOHN BUCKLEY | MAY 2011 | SOURCE: SF Gate

The IEA's statement last week on a "clear, urgent need for additional supplies" is a hint that it may coordinate the release of emergency oil stockpiles unless OPEC raises output, the Centre for Global Energy Studies said.

The Paris-based International Energy Agency, an adviser to 28 oil-consuming nations, said last week it is "prepared to consider using all tools that are at the disposal of IEA member countries," in a statement published by the governing board.

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"The IEA has tried to convince OPEC to produce more crude, unusually releasing a governing board statement on May 19 arguing that there is a clear need for OPEC to act, but it is unlikely that a response will be forthcoming," the London-based CGES said today in a monthly report.

The Organization of Petroleum Exporting Countries, which accounts for 40 percent of global supplies, meets in Vienna on June 8 to decide whether to raise production as high oil prices dents demand. OPEC's 11 members, excluding Iraq, pumped 26.18 million barrels a day in April, down from 26.22 million in March, according to CGES estimates.

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