A major release of emergency crude stocks this summer by the IEA this
summer would be politically tricky, but the agency could take targeted action
to ease the shortage of light, sweet crude following the loss of Libyan
supplies, says JPMorgan analyst Lawrence Eagles.
"One option that could
circumvent the politics--the IEA builds a case that the shortfall is a crude quality,
not a volumetric issue" he says. It could offer either a limited release
of light, sweet crude from strategic stocks, or offer to swap light oil for
heavier grades that are more abundant on the market, he says.