US and IEA collectively decide not to release stocks – 19 September 2008

After a thorough joint assessment of the impact of Hurricanes Gustav and Ike, the International Energy Agency (IEA) and the US government have decided that a collective action to release oil to the market from strategic reserves is not necessary at this time. The IEA and the US government were in close co-ordination throughout the week, monitoring possible damage to the oil and gas complex in the Gulf of Mexico. Producing platforms in the Gulf now seem generally to have fared well, as did other infrastructure. The majority of production facilities and refineries in the region had stopped producing ahead of the storms as a precautionary measure. Damage assessment and notably the restoration of power supplies have delayed the restart of the refineries. Not all refiners are ready to produce yet, but the assessment of the US government and the IEA on balance is that, despite a significant loss of crude oil and product due to the shut-ins, there remains adequate flexibility in the system to offset this supply disruption.

The IEA welcomes ongoing efforts by producers and refiners outside the US Gulf to help ensure adequate supplies of crude and products are available for both prompt and upcoming winter fuel requirements.