Oil price sinks on IEA intervention, US demand
IEA to add 60 million barrels in 30 days, WTI falls by $4 a barrel
The International Energy Agency (IEA) has confirmed that it will intervene in world oil markets by putting 60 million barrels of reserves on sale in the next thirty days.
The announcement - together with weaker than expected US jobs figure - has already led to a sharp decline in oil prices, with West Texas Intermediate falling $4 so far and still falling.
The IEA says oil will be released "around the end of next week". The consumer's representative body has made no secret of it's dismay at OPEC's failure to agree to pump more crude and clearly feels the unilateral efforts of Saudi Arabia and other gulf states will be insufficient to deflate prices to the extent the IEA feels necessary to spur macroeconomic recovery.
Reports state that the IEA's decision to release was made collectively, with additional supplies to be distributed as follows: North America 50%; Europe 30%; and Pacific 20%.