IEA Deputy Head: Oil Mkt Seems Well Supplied, No Supply Gap From Libya

The deputy head of the International Energy Agency, or IEA, said Wednesday that the world's oil market seems well supplied even with a loss of 1.5 million barrels a day from Libya , while a recent oil price spike reflects fears over Middle East turmoil rather than a supply shortage.

"We kept calling and asking our countries, and companies, if they were short, and nobody every said they were short," Richard Jones said in an interview at the 2nd Clean Energy Ministerial in Abu Dhabi .

"Every body said it's a source of concern--it reduces the available surplus capacity because Saudi started offering to pump more oil--but by and large, it looks like the market is well supplied," Jones said. He added that Saudi Arabia ' new super light crude blend "didn't get that many takers."

"It shows the market is pretty good," Jones said. The oil price spike rather reflected concerns that the prolonged political unrest in Libya could spill-over to other countries, particularly the oil-producing states in the region, he added.

At about 1330 GMT, light, sweet crude for May delivery was 21 cents, or 0.2%, higher as $108.55 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange gained 57 cents, or 0.5%, to $122.79 a barrel.

The IEA represents the governments of major energy consuming economies, including the U.S. and European countries.

Jones also reiterated the IEA's view that a sustained oil price at current levels would have a tangible impact on global economic growth.