International Energy Newsletter: The International Energy Agency (IEA) decided not to repeat the highly unusual decision to release the strategic oil reserve, and at the same time defended its initial release of the reserve, saying that the move successfully met the “market demandâ€.
IEA, the western oil supervising agency, injected 60 million barrels of crude oil (99.01, -0.19, -0.19%) into the market during the 30 days after June 23. In a statement, the IEA said: "By increasing liquidity and making up for the shortfall before OPEC members increased supply, the move fulfilled market demand."
After the move to release crude reserves was completed on Saturday, the agency did not "seek to release more inventory." Analysts said that the IEA's decision to use strategy stocks unexpectedly only temporarily suppressed oil prices.
Before making the announcement, the most important benchmark Brent crude oil price was about 112.50 US dollars per barrel. When the IEA made the above decision on June 23, the lowest price of oil had fallen to 103.62 US dollars, but it rebounded strongly in the next few weeks. The Brent crude oil price reached US$118.25 on Thursday, which was significantly higher than the level before the IEA chose to use its strategic reserves held by its member countries.
Caroline Bain, Senior Editor of Economist Intelligence Unit (EIU), said: "If their goal is to reduce oil prices, then obviously they have not succeeded."
On May 19, the IE A board of directors publicly stated that if OPEC failed to increase production, the agency will release strategic reserves. Then, during the Vienna dispute that broke out on June 8th, OPEC refused to increase production quotas. Facts have proved that only the reserve of the International Energy Agency is still far from OPEC's.
IEA, the western oil supervising agency, injected 60 million barrels of crude oil (99.01, -0.19, -0.19%) into the market during the 30 days after June 23. In a statement, the IEA said: "By increasing liquidity and making up for the shortfall before OPEC members increased supply, the move fulfilled market demand."
After the move to release crude reserves was completed on Saturday, the agency did not "seek to release more inventory." Analysts said that the IEA's decision to use strategy stocks unexpectedly only temporarily suppressed oil prices.
Before making the announcement, the most important benchmark Brent crude oil price was about 112.50 US dollars per barrel. When the IEA made the above decision on June 23, the lowest price of oil had fallen to 103.62 US dollars, but it rebounded strongly in the next few weeks. The Brent crude oil price reached US$118.25 on Thursday, which was significantly higher than the level before the IEA chose to use its strategic reserves held by its member countries.
Caroline Bain, Senior Editor of Economist Intelligence Unit (EIU), said: "If their goal is to reduce oil prices, then obviously they have not succeeded."
On May 19, the IE A board of directors publicly stated that if OPEC failed to increase production, the agency will release strategic reserves. Then, during the Vienna dispute that broke out on June 8th, OPEC refused to increase production quotas. Facts have proved that only the reserve of the International Energy Agency is still far from OPEC's.
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