The IEA said on Thursday that it ended its release of oil from strategic reserves begun in June to compensate for a cut in supplies from Libya, just days after forecasting resumed production in the country. The International Energy Agency said its 28-member countries "concluded that the interrupted Libyan supplies have been successfully addressed by a combination of the IEA collective action and increased production from producer countries," the body said in a statement.
The IEA, which represents the major oil consuming nations, launched the collective drawdown on June 23 as the loss of the 1.6 million barrels per day of Libyan oil production had begun to affect the markets. The price of North Sea Brent quality crude had ranged between $105 and $120 per barrel since May, with the June announcement of the IEA releasing stocks causing a plunge by about $10 dollars a barrel that soon evaporated.
On Thursday, Brent North Sea crude for delivery in October jumped $2.78 to $115.18 a barrel in late London deals after the IEA said it was halting the stocks release. New York's main contract, light sweet crude for delivery in October, climbed 75 cents to $89.66. The IEA also noted the end to the collective action, which was renewable every thirty days, comes "against a backdrop now of weakening expectations for global oil demand growth."
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