The IEA has no plans for a collective release of emergency oil stocks at this stage, executive director Fatih Birol said today, despite flows through the strait of Hormuz grinding to a halt following the outbreak of war between the US and Iran.
Speaking in Brussels after meeting EU commissioners, Birol stressed that the global oil market is well supplied and that current disruption stems from severe logistical blockages rather than a shortage of crude.
"Today there is plenty of oil in the market. I repeat: there is plenty of oil in the market," he said. "Our problem is a problem of dislocation — a problem of logistics. And it is creating challenges for many countries, some more than others."
Birol said he has held calls in recent days with major oil producers including the US, Brazil, Saudi Arabia, Azerbaijan, Norway and Canada, as well as key consuming countries such as the UK, Turkey, Singapore, India, Japan and South Korea, as governments try to ease the disruption to shipping.
"Everybody is trying to find a solution," he said.
Asked about emergency stocks, Birol said member governments were keeping "all options on the table" but see no need for co-ordinated action now. "Based on my discussions with IEA member governments and looking at current market conditions, there are no plans for a collective action at this stage. We are facing a temporary disruption — a logistical disruption," he said.
The IEA warned this week that a prolonged blockage of Hormuz could flip the market into deficit, despite a sizeable surplus so far this year.
