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| Maria Van der Hoeven, Director of the International Energy Agency (Photo credit: OECD) |
Just one week after its chief said there was no discussion of possible emergency action, the IEA is now thought to have agreed to the idea, the industry journal Petroleum Economist reported on Friday, citing unnamed sources. The release could be as large or larger than last year's 60 million barrel injection.
Responding to the report, IEA Executive Director Maria van der Hoeven said the agency remained in close communication with members and stood 'prepared to act as necessary in response to a physical disruption', avoiding the question of whether active consideration of a reserve release was underway.
'However, as I said as recently as last week, at this time the conditions that would warrant such a response by the IEA are not present,' she said in a statement.
But market fundamentals may not be the principal consideration. While the disruption to Iran's exports may be used as the excuse for action, U.S. officials are also keen to temper rising prices that risk diminishing the impact of financial sanctions on Tehran, Reuters reported last week, citing sources. ... Continue to read.
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