IEA details Katrina oil stock effort
IEA details Katrina oil stock effort
SEP. 7 11:30 A.M. ET Less than one-fifth of the emergency oil and fuel stock release launched by governments to cope with Hurricane Katrina's impact on oil markets will be in the form of gasoline, the International Energy Agency said Wednesday.
The Paris-based energy watchdog, which announced the release of strategic stocks by 26 countries last week, issued a statement giving further details of the measures taken following Katrina.
Of a stock draw totaling almost 2 million barrels of oil equivalent per day, some 369,000 bpd will be in the form of gasoline, the IEA said, while 1.29 million bpd will be in crude oil.
The organization said its governing board will meet again Sept. 15 to decide whether further measures are needed beyond the initial stock release, set to last 30 days.
"The IEA response can be adapted to changing market needs by adjusting the duration or quantity of oil," the IEA statement said.
Announcing the stock draw last Friday, the IEA had called on member governments to free up extra gasoline supplies in preference to crude oil, saying the hurricane had knocked out 2 million barrels per day in U.S. refining capacity and 1.5 million bpd in crude production.
The IEA's deputy head, Willam Ramsay, also predicted that the disaster would "raise questions" about whether the United States should continue to stock just crude and no gasoline in its Strategic Petroleum Reserve.
Since Friday's announcement, oil prices have eased amid signs that refineries are coming back on stream faster than many had feared and that the capacity crunch could be short-lived.
The U.S. Congressional Budget Office predicted that Katrina's economic impact would be "significant but not overwhelming," in an assessment obtained by The Associated Press.
"Last week, it appeared that larger economic impacts might occur, but despite continued uncertainty, progress in opening refineries and restarting pipelines now makes those larger impacts less likely," CBO Director Douglas Holtz-Eakin said in a letter to congressional leaders.
SEP. 7 11:30 A.M. ET Less than one-fifth of the emergency oil and fuel stock release launched by governments to cope with Hurricane Katrina's impact on oil markets will be in the form of gasoline, the International Energy Agency said Wednesday.
The Paris-based energy watchdog, which announced the release of strategic stocks by 26 countries last week, issued a statement giving further details of the measures taken following Katrina.
Of a stock draw totaling almost 2 million barrels of oil equivalent per day, some 369,000 bpd will be in the form of gasoline, the IEA said, while 1.29 million bpd will be in crude oil.
The organization said its governing board will meet again Sept. 15 to decide whether further measures are needed beyond the initial stock release, set to last 30 days.
"The IEA response can be adapted to changing market needs by adjusting the duration or quantity of oil," the IEA statement said.
Announcing the stock draw last Friday, the IEA had called on member governments to free up extra gasoline supplies in preference to crude oil, saying the hurricane had knocked out 2 million barrels per day in U.S. refining capacity and 1.5 million bpd in crude production.
The IEA's deputy head, Willam Ramsay, also predicted that the disaster would "raise questions" about whether the United States should continue to stock just crude and no gasoline in its Strategic Petroleum Reserve.
Since Friday's announcement, oil prices have eased amid signs that refineries are coming back on stream faster than many had feared and that the capacity crunch could be short-lived.
The U.S. Congressional Budget Office predicted that Katrina's economic impact would be "significant but not overwhelming," in an assessment obtained by The Associated Press.
"Last week, it appeared that larger economic impacts might occur, but despite continued uncertainty, progress in opening refineries and restarting pipelines now makes those larger impacts less likely," CBO Director Douglas Holtz-Eakin said in a letter to congressional leaders.
posted by Marcel at 9:09 AM
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