The IEA Should Act
Occasional Memo: February 23, 2011
As of this writing, Libyan crude exports have not yet been cut off, but if they are, the IEA should act. If the draw down of strategic stocks is superseded by Saudi Arabia, in a well meaning but opaque manner, tapping its spare capacity, then the IEA has forfeited its emergency response leadership, and the opportunity to quickly calm the markets. Moreover, the market will need light sweet crude rather than medium or heavy sour.
