Europe Takes Neutral Stance As IEA Mulls 2nd Oil Stock Release

Europe Takes Neutral Stance As IEA Mulls 2nd Oil Stock Release
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Τρι, 19 Ιουλίου 2011 - 16:52
European governments are adopting a neutral stance to the possibility of a second release of oil from emergency stocks by the International Energy Agency to counter the disruption in Libyan exports, according to officials from member countries.
European governments are adopting a neutral stance to the possibility of a second release of oil from emergency stocks by the International Energy Agency to counter the disruption in Libyan exports, according to officials from member countries.

Officials from
Germany , the U.K. , the Netherlands , France and Italy say they are waiting for recommendations from the IEA, which is assessing market data this week, before deciding if another release is necessary.

These countries collectively supplied a fifth of the 60 million barrels of oil released from emergency stocks last month.

The IEA said last week the initial stock release had proved effective, despite international oil prices rebounding to their level prior to the action. The oil market is now more flexible and the price of light sweet crude, relative to heavier grades, has fallen after increasing sharply following the outbreak of the Libyan civil war, it said in its monthly report.

However, the IEA also warned the oil market still looks increasingly tight through the remainder of the third quarter due to an increase in demand and a reduction and supply disruptions in a number of countries in addition to
Libya .

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