Business | Oil & Gas
No need for release of IEA oil reserves
The International Energy Agency (IEA) and the US government have decided there is no need to release oil from strategic reserves after hurricanes Gustav and Ike disrupted production, the IEA said late on Friday.
- Reuters
- Published: 23:52 September 20, 2008
London: The International Energy Agency (IEA) and the US government have decided there is no need to release oil from strategic reserves after hurricanes Gustav and Ike disrupted production, the IEA said late on Friday.
The two recent storms shut down almost all US Gulf Coast crude oil production, constraining the nation's fuel supplies.
"After a thorough joint assessment of the impact of hurricanes Gustav and Ike, the International Energy Agency and the US government have decided that a collective action to release oil to the market from strategic reserves is not necessary at this time," the IEA said in a statement on its website.
"Not all refiners are ready to produce yet, but the assessment of the US government and the IEA on balance is that, despite a significant loss of crude oil and product due to the shut-ins, there remains adequate flexibility in the system to offset this supply disruption," the IEA said.
US Energy Secretary Sam Bodman had said earlier on Friday the United States would not ask IEA members to release emergency gasoline and diesel supplies in the wake of Hurricane Ike.
Used after Katrina
"We will not be asking the IEA to contribute, because we are reasonably satisfied with the rate of recovery in the area," Bodman said, adding any gasoline shortages would be temporary.
Member-countries of the Paris-based IEA hold emergency oil stocks for use in case of supply shocks.
They were last tapped in 2005 after Hurricane Katrina caused major disruption in the Gulf of Mexico.
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