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IEA sees oil market as 'sufficiently supplied'

International Energy Agency Executive Director Maria van der Hoeven said she sees no reason for a release from the US Strategic Petroleum Reserve (SPR).

The IEA “bases our actions on data and reality,” she told reporters after an Aug. 17 speech at Rice University’s Baker Institute, adding, “The market is sufficiently supplied.”

Her comments came a day after Reuters reported that the White House was “dusting off” plans for potentially tapping the SPR.

Van der Hoeven said she had not discussed a potential release with members of the Paris-based IEA, which coordinates the use of consumer nations’ strategic inventories.

Last year, the 28 IEA member countries agreed to release oil in response to the disruption of oil supplies from Libya. IEA member countries agreed to make 2 million b/d of oil available from their emergency stocks (OGJ Online, June 23, 2011).

Upon questioning about Iran, Van der Hoeven said sanctions against Iran over its nuclear program have been expected unlike disruptions caused last year by unrest in Libya.

A European Union embargo on Iranian crude oil took full effect on July 1 in a joint effort with the US to force Iran to curb nuclear activities.

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