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IEA says 28 countries to release 60 million barrels of oil

PARIS, FR (NEWS1130) – The International Energy Agency says 28 countries have agreed to release 60 million barrels of crude to the market to offset disruptions prompted by Libya’s war.

The Paris-based agency says it made the move because the normal increase in demand over the summer “will exacerbate the shortfall further.” It also warns the tight oil market “threatens to undermine the fragile global economic recovery.”

The countries will make two million barrels a day available from their emergency stocks over a period of 30 days.

The agency says about 132 million barrels of crude oil were absent from the market at the end of May because of Libya’s supply problems. The August crude contract on the New York Mercantile Exchange fell $4.53 to $90.86 (U.S.) a barrel.