PARIS – The International Energy Agency, founded in 1974 to help non-OPEC member countries coordinate a collective response to major supply disruptions, issued a statement today on the crude supply disruption situation in Saudi Arabia. “Recent events are a reminder that oil security cannot be taken for granted, even at times when markets are well supplied, and that energy security remains an indispensable pillar of the global economy,” said Dr. Fatih Birol, the IEA’s executive director. “This is why the IEA remains vigilant about the risk of disruptions to global oil supplies, whether they are caused by extreme weather events such as hurricanes, major technical outages, or geopolitical crises, and stands ready to act when needed.”
The IEA statement reads, in part:
“The International Energy Agency remains in regular contact with authorities in Saudi Arabia and other major producing and consuming countries, as well as industry, following Saturday’s attacks. We welcome the statement made by Saudi Energy Minister Prince Abdulaziz bin Salman on bringing Saudi Arabia’s suspended production back online.”“For now, markets remain well supplied with ample stocks available. IEA member countries hold about 1.55 Bbbl of emergency stocks in government-controlled agencies, which amount to 15 days of total world oil demand. These can be drawn upon in an emergency collective action and would be more than enough to offset any significant disruption in supplies for an extended period of time.” “In addition, IEA member countries also hold 2.9 Bbbl of industry stocks as of the end of July, a two-year high that can cover more than a month of world oil demand. These stocks include about 650 MMbbl of obligated emergency stocks, which can be made immediately available to the market when governments lower their holding requirements.” “Taken together, these emergency reserves can bring ample additional supply to the global market if needed.” International Energy Agency member countries include: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, New Zealand, Norway, Poland, Portugal, Slovak Republic, Spain, Sweden, Switzerland, The Netherlands, Turkey, United Kingdom, and the United States. IEA association countries include: Brazil, China, India, Indonesia, Morocco, Singapore, South Africa, and Thailand.