Global oil reserves tapped in efforts to curb prices

1.   

·         Following the libyan crisis, libyan oil exports have been virtually halted

·         This ahs effected major importers of libyan oil like france, germany, italy and spain

·         To compensate for the loss. US and its allies whoa re members of international energy association have announced release of 60 mn barrels from their ememrgency oil reserves

·         Oil prices have already been falling down and this move will further bring down prices

·         US had setup a 720 mn barrel oil reserve following the 1973-74 oil crisis

·         OPEC has failed to respond to the crisis as its members didn’t agree to increase their outputs

·         Also oil exports from other countries like yemen has been ond ecline

·         Hence this move was taken to cool down the prices

International energy agency

1.       International energy agency

·         Formed in 1974 following the oil crisis

·         Has 28 members including US, couple of EU countries, japan, australia, newzealand

·         established in the framework of the Organisation for Economic Co-operation and Development (OECD)

·          The IEA was initially dedicated to responding to physical disruptions in the supply of oil, as well as serving as an information source on statistics about the international oil market and other energy sectors.

·         The Agency's mandate has broadened to focus on the "3Es" of sound energy policy: energy security, economic development, and environmental protection