By OGJ editors
HOUSTON, Mar. 20 -- Paris-based International Energy Agency issued a statement Thursday to reassure the world that it will monitor world oil supplies during the US-led attack on Iraq.
"With the initiation of military operations in Iraq, we are monitoring developments as they relate to the supply of oil to world markets," Claude Mandil, IEA's executive director, said in a brief statement.
"Producers are confident they can keep the market adequately supplied, and we have been assured that they will make every effort to do so," he said, adding he is in close contact with IEA member countries, major oil producers, and the Organization of Petroleum Exporting Countries.
"We appreciate steps producers have taken to prevent any shortage in world oil supply—earlier this year and again now. We are determined to promote stability in world oil markets and remain ready to reinforce producers' efforts should the need arise," Mandil said.
Meanwhile in Vienna Thursday, OPEC Sec. Gen. Alvaro Silva-Calderón said OPEC remains committed to securing oil market stability. OPEC members have pledged to use their spare oil production capacity when required by the market.
"You have to understand that we are dealing with special circumstances here," Silva-Calderón told OPEC News Agency during a news conference outlining OPEC's position following the outbreak earlier today of hostilities in Iraq, one of OPEC's five founding members.
Silva-Calderón stressed that, for the moment, the international oil market was well supplied by crude, as evidenced by the fall in prices seen over the past few days.
When asked about the level of oil prices, Silva-Calderón reiterated OPEC's commitment to its price band system, which sought to keep the price of the OPEC basket of seven crudes within a $22-28/bbl range.
