HOUSTON, June 23 — Oil prices dropped in early trading June 23 after Paris-based International Energy Agency said its 28 member countries agreed to release 60 million bbl of crude from strategic reserves at the rate of 2 million b/d for 30 days “in the coming month.” The US will provide 30 million bbl of this crude from its Strategic Petroleum Reserve (OGJ Online, June 23, 2011).
IEA officials said the release is in response to disruption of crude supplies from Libya as a result of the revolution in that country.
However, Saudi Arabia earlier said it would increase its oil production to 10 million b/d to help make up any market shortfall (OGJ Online, June 20, 2011). And Goldman Sachs Group Inc. said this week Libyan rebels could increase their country’s oil exports by as much as 355,000 b/d from areas they hold (OGJ Online, June 23, 2011).
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