by Muyu Xu and Sudarshan Varadhan
SINGAPORE (Reuters) – The current level of oil stocks in member states of the International Energy Agency (IEA) is sufficient and there is no need to increase requirements for strategic reserves, it said on Tuesday an agency manager.
The IEA, headquartered in Paris, said it was ready earlier this month to act if necessary to maintain supplies to the oil market in the face of uncertainties caused by the conflict between Israel and Hamas and the risks on oil flows from the Middle East.
Crude prices rose to more than $95 per barrel after the attack launched on October 7 by Hamas on Israel, which responded with a massive bombardment of the Gaza Strip.
During Russia’s invasion of Ukraine in February 2022, the 31 member countries of the IEA released strategic reserves to supply the oil market.
“I don’t think we need to do anything like that at the moment. But we will keep an eye on the situation,” said Keisuke Sadamori, director of energy markets and security at the ‘IEA, during an interview with Reuters on the sidelines of an event in Singapore.
The IEA requires member states to hold oil stocks equivalent to at least 90 days of net oil imports and to be prepared to collectively respond to serious supply disruptions affecting the global oil market.
The combined strategic reserves of IEA members currently stand at approximately 1.2 billion barrels.
“I think 90 days of net imports should be enough at present. Such stocks are necessary not only to take concrete measures, but also to maintain some confidence in the market,” Keisuke Sadamori said.
However, some countries are considering taking measures to increase their stocks. The United States plans to buy six million barrels of crude oil to increase its reserves in December and January.
According to Keisuke Sadamori, the conflict in the Middle East has not had a direct impact on the physical supply of oil. “But we must be vigilant as the situation evolves,” he said.
(Reporting by Muyu Xu and Sudarshan Varadhan, Blandine Hénault for the , edited by Kate Entringer)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
