IEA Stands Ready to Act {Iran Oil}

[thackney]

IEA Stands Ready to Act
https://www.rigzone.com/news/iea_stands_ready_to_act-23-jul-2019-159374-article/
July 23, 2019

The International Energy Agency (IEA) has revealed that it is closely monitoring developments in the Strait of Hormuz and is “ready to act” to ensure global markets remain adequately supplied.

In a statement posted on its website on Monday, the IEA said its emergency oil supplies are large enough to cover any disruptions from the Strait of Hormuz “for an extended period” but highlighted that consumers can be “reassured” that the oil market is currently well stocked.

About 20 million barrels of oil, or around 20 percent of global supply, transit each day through the Strait, the IEA confirmed. IEA countries hold 1.55 billion barrels of public emergency oil stocks, according to the organization, which added that an additional 650 million barrels are held by industry under government obligations.

An IEA oil market report released in July revealed that oil supply exceeded demand by 0.9 million barrels per day in the first half of 2019. The IEA’s forecast for oil demand growth in 2019 is currently 1.2MMbpd....

[thackney]

...In accordance with the Agreement on an International Energy Programme (I.E.P.), each IEA country has an obligation to hold emergency oil stocks equivalent to at least 90 days of net oil imports. In case of a severe oil supply disruption, IEA members may decide to release these stocks to the market as part of a collective action.

There are three approaches to guarantee overall stock levels to meet a country’s 90 days requirement: industry stocks, government stocks and agency stocks. Several countries use only one category of stocks while most use a combination of the three. Along with other emergency policies, IEA members’ stockholding structure is assessed every 5 years as part of a peer-to-peer review process....

https://www.iea.org/topics/energysecurity/oilsecurity/

Closing Oil Stock Levels in Days of Net Imports {by country}
https://www.iea.org/netimports/