UPDATE: IEA Closely Monitoring Oil Market, Prices Very High
March 29 2012 - 2:01PM
Dow Jones News
The International Energy Agency is concerned that very high oil
prices could damage the fragile economy and will continue to
monitor the market and remain in close contact with its member
countries, the organization's executive director, Maria van der
Hoeven, said Thursday.
The statement, to mark the conclusion of a regular quarterly
meeting in Paris of energy experts from all 28 IEA member
countries, didn't directly address comments from a French
government official Wednesday, that France has approached the
agency about tapping emergency oil stocks to ease high prices.
However, the statement did indicate a change in the IEA's
rhetoric on the issue. Van der Hoeven said last week that the IEA
hadn't discussed any plans to release oil from strategic stocks
with its members.
"No specific supply disruption is currently under way, we are
not planning any coordinated actions at the present time," she said
at a conference in New Delhi, India.
This week, van der Hoeven said the IEA, "will remain in close
contact with member countries to exchange views about the
oil-market situation."
"The IEA was created to respond to serious physical supply
disruptions, and we remain ready to act if market conditions so
warrant," van der Hoeven said in the statement after the Paris
meeting.
Officials from the U.S. and the U.K. have also discussed the
possibility of releasing oil from emergency stocks, which are
coordinated by the IEA. A stock release has been proposed to reduce
prices and ease the impact of sanctions on Iranian oil exports to
be imposed in July.
-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317;
james.herron@dowjones.com