Stop In Iraqi Oil Exports Would Trigger IEA meeting

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IEA Priddle: Stop In Iraqi Oil Exports Would Trigger Mtg

PARIS (Dow Jones)--An interruption in Iraqi exports of crude oil would trigger an immediate meeting of International Energy Agency members at which discussion of releasing strategic stocks would be discussed, Robert Priddle, IEA executive director, said late Thursday.

"This would be a significant shock. We would immediately come together in the IEA to see how best to respond, including whether to release strategic oil stocks," Priddle said, speaking after a regularly scheduled board meeting.

"We're ready to draw down if we need to," Priddle also said.

The IEA, which consists mostly of countries in the Organization for Economic Cooperation and Development, holds an average of 112 days of net crude oil imports. A supply disruption representing 7% of world oil supplies triggers an automatic release of IEA emergency stocks, although members can release stocks for lesser disruptions or if they decide market conditions warrant it.

Iraq currently exports approximately 2.3 million barrels a day of crude oil, approximately 3% of world supply.

Priddle also said that provisional data show heating oil stocks in the U.S. and in Europe in October are lower than in September, while heating oil stocks in Japan have recovered somewhat.

The board members also discussed the place security of energy supply plays in sustainable economic development.

Priddle also said that detailed work was being done to investigate the way liberalization of world energy markets is affecting security of energy supply as well as energy diversity.

Also discussed at Thursday's board meeting were concerns over the way sustained high oil prices into next year would affect economic development, especially in developing countries such as Thailand, which tend to be more oil dependent and therefore could suffer a greater loss in gross domestic product.

The next regularly scheduled IEA board meeting is Dec. 8.

http://asia.biz.yahoo.com/news/asian_markets/article.html?s=asiafinance/news/001027/asian_markets/dowjones/IEA_Priddle__Stop_In_Iraqi_Oil_Exports_Would_Trigger_Mtg.html

-- Martin Thompson (mthom1927@aol.com), October 26, 2000

Answers

A am sure it would "trigger" a lot of other things as well.

-- Martin Thompson (mthom1927@aol.com), October 26, 2000.

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