IEA Ready to Release More Oil: Tanaka
By Catherine Boyle, Web Producer, CNBC.com
NEW YORK (CNBC) -- The International Energy Agency is ready to release more oil onto the market if necessary, Nobuo Tanaka, Executive Director of the agency, told CNBC in a first on CNBC interview Friday morning.
"We are ready to act at any time and if we have to we will continue," Tanaka said. He added that the watchdog "sometimes had to bite".
On Thursday, the IEA announced the surprise release of 60 million barrels of oil from the strategic petroleum reserves of 28 nations. The statement sent shockwaves through global markets and sent oil prices down to around $91 per barrel, their lowest level since February.
More from CNBC
Oil Traders: Tapping Reserve Was 'Genius' Move by Obama
Tapping Oil Reserve Still Won't Lower Gas Prices Below $3
Surprise Oil Release by IEA Rattles Markets, Investors
Rogers, whose portfolio is mainly in commodities and currencies, said oil prices will rise."The only test of the right oil price is whether we can maintain the level of the global economic recovery. At the same time, we want to maintain investment level and exploration," Tanaka added. "We are convinced the market is getting tighter so if we don't loosen up we could see a much more difficult situation and a hard landing for the economy," he added. The decision to release 60 million barrels of oil followed market disruption prompted by trouble in the Middle East and divisions in the OPEC countries over whether to raise production. The agency also wanted to stave off a possible spike in energy prices. The IEA believes that the crisis in Libya had removed 132 million barrels of oil from the market by the end of May, and predicts that Libyan oil will mainly remain off the market until the end of the year. It was just the third time in the agency's history that its members released some of their more than four billion barrels of stocks. The United States will provide half, Europe 30% and members in Pacific Ocean the remaining 20%. The two previous releases of oil came during the Gulf War and shortly after Hurricane Katrina. While 60 million barrels only represents around 17 hours of global consumption, the market was spooked on Thursday.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV