Premier eFinance: IEA says it sought support from India and China before releasing oil reserves.

June 28, 2011 - PRLog -- Premier eFinance has learned from the International Energy Agency’s executive director, Nobuo Tanaka that the three nations ”understand” and  “appreciate” the action of an oil release, which aims at filling the significant supply gap caused by the unrest in Lybia and supply disruptions in other oil producing countries.

Tanaka said that IEA also invited China, the world’s second-largest oil consumer, to join the IEA and contribute, together with other member countries, toward stabilizing global oil prices but has yet to receive an official response.

As a top oil consumer whose production costs can be heavily impacted by the position of oil prices, China applauded the release of the IEA’s strategic oil stockpiles.

However, it remains unclear if China will actually join IEA’s efforts, and the country’s membership issue has not made much progress after being brought up on numerous previous occasions.

IEA member nations reached the agreement to release 60 million barrels of oil reserves next month after the Organization of Petroleum Exporting Countries (OPEC) failed to agree on an official increase in oil production quotas at their latest meeting, Premier eFinance was told.

The United States, which lead the oil price control efforts, will supply half of the released oil reserves while Japan, Germany, France, Spain and Italy will be providing most of the rest.

U.S. Energy Secretary Steven Chu said the United States will “continue to monitor the situation and stand ready to take additional steps if necessary.” The U.S.’s special petroleum reserves currently stand at a record high level of 727 million barrels.

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