Business | Oil & Gas
IEA willing to release stocks if Nigeria crisis deepens
The International Energy Agency (IEA) is ready to coordinate a release of emergency oil stocks, as it did in September, if the political situation in Nigeria or Iran leads to supply disruptions.
- Reuters)
- Published: 00:00 January 27, 2006
Davos, Switzerland: The International Energy Agency (IEA) is ready to coordinate a release of emergency oil stocks, as it did in September, if the political situation in Nigeria or Iran leads to supply disruptions.
Claude Mandil, executive director of the IEA, advisor to 26 industrialised nations, also urged Russia to reform its energy markets and end the monopoly of Gazprom, the world's largest gas producer, because its dispute with Ukraine put its reputation as a supplier at risk.
"If there was supply disruption, either created by Nigeria, Iran or both, that would lead, no doubt about that, to a stock release from the IEA countries. We demonstrated last September we are able to decide on a very short notice and that was efficient," Mandil said.
The IEA, set up after the 1973-74 Arab oil embargo to oversee western energy needs, in September ordered the first coordinated release of oil stocks in 15 years after Hurricane Katrina knocked out US Gulf Coast refineries.
Geopolitical risks have been keeping oil prices close to the record high of $70 a barrel, hit in August after Katrina.
Pressure
Analysts say Iran, the world's fourth biggest crude exporter, could respond to Western pressure over its nuclear scheme by cutting back daily oil sales of 2.4 million barrels. Mandil said: "There are some vocal threats (from Iran). If (threats are realised), consuming countries have a tool to overcome the difficulties. The tool is a strategic stocks use."
Supply fears from Opec member Nigeria, the world's eighth largest crude exporter, lingered on Wednesday, with more than 220,000 barrels per day of Nigerian crude shut in and militants threatening more violence.
Reuters
Running dry
People wait to buy fuel at a filling station in the Nigerian capital Abuja. Militant attacks against foreign oil companies have severely disrupted supply. The IEA says it is on standby to release stocks in case the problem escalates.
Share this article
More from Oil & Gas
More from Business
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
New law to protect investor rights
Dubai land department is studying legislation to protect property purchasers
-
Global Village
Revamped layout featuring four cultures to greet visitors this season
-
Cloud computing is here to stay
Managing security effectively is critical when sharing data over the internet
