Conclusion of IEA Collective Action

IEA Executive Director Claude Mandil today announced that the collective action taken by IEA member countries in response to the interrupted oil supplies in the Gulf of Mexico, caused by Hurricane Katrina, was successfully concluded on December 22nd.

This decision was made in consultation with all 26 IEA member countries, which agreed that the impact of Hurricanes Katrina and Rita has been successfully addressed by a combination of the IEA collective action, lower than expected demand, worldwide refinery flexibility and additional efforts by producer countries. The collective action was launched on 2 September 2005, when the IEA member countries agreed to make available to the market the equivalent of 60 million barrels of crude oil and oil products. Nearly all of the barrels were provided to the market through the use of stocks and increased indigenous production. Moreover, demand restraint measures brought additional relief to the market.

The IEA member countries will exercise flexibility in re-establishing their emergency stock levels through 2006, noting the need to take into account seasonal demand and the possibility of higher than expected refinery maintenance.