IEA oil stocks enough to offset any significant disruption in supplies
Baku, Azerbaijan, Sept.19
By Leman Zeynalova - Trend:
Oil stocks of members of the International Energy Agency (IEA) are more than enough to offset any significant disruption in supplies, Trend reports citing the IEA statement on the recent developments in Saudi Arabia’s oil industry.
“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,” reads the statement.
Saudi Arabia’s stock market fell by 2.3 percent at Sunday’s open as the country grappled with weekend drone attacks on the heart of its oil production facilities in Abqaiq and Khurais claimed by Yemen’s Houthi rebels.
Reports that the country may take weeks to return to full oil supply capacity, depending on the scale of the damage.
Abqaiq, in the kingdom’s eastern province, is the world’s largest oil processing facility and crude oil stabilization plant with a processing capacity of more than 7 million barrels per day (bpd). Khurais is the second largest oil field in the country with a capacity to pump around 1.5 million bpd.
“We welcome the statement made by Saudi Energy Minister Prince Abdulaziz bin Salman on bringing Saudi Arabia’s suspended production back online.The IEA reiterates its commitment to ensure that global oil markets remain well supplied. As ever, the IEA is ready to take rapid action in the event of any sustained shortfalls,” said IEA.
For now, markets remain well supplied with ample stocks available, according to the statement.
“IEA member countries hold about 1.55 billion barrels 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,” said EIA.
“In addition, IEA member countries also hold 2.9 billion barrels 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 million barrels 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.”
IEA Members Countries: 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, United States.
IEA Association Countries: Brazil, China, India, Indonesia, Morocco, Singapore, South Africa, Thailand.
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