The News reported that global crude oil market is sufficiently supplied as output has adjusted to the loss of Iranian trade and higher prices alone do not justify a release of strategic reserves.

Ms Maria van der Hoeven executive director of IEA said that “We see that the loss of these Iranian barrels was long in the making, the market had time to adjust itself. Higher prices alone are not the trigger for IEA collective stock release and at this moment we see that the crude oil market is adequately supplied.”

Brent crude has been trading above USD 110 in recent weeks after falling below USD 90 in June putting pressure on the IEA from some members, particularly the United States to tap into emergency oil inventories to temper rising prices.

Some reports last week indicated that the release plan, supported primarily by the United States, Britain and France was gaining traction but Ms van der Hoeven’s comments indicate the IEA remained firmly opposed.

She said that “The Iranian sanctions didn’t come out of the blue. The market has been adjusting relatively smoothly to lower Iranian supplies over the last nine months. On the supply side there is a steep increase in production from other OPEC sources, like Saudi Arabia and we also see a steep ramp up in the United States and the Canada oil sands.”

Source - The News.com

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