IAEA reports rise in global oil stocksApril 12, 2012 - 17:50 AMT PanARMENIAN.Net - The oil market has broken a two-year cycle of tightening supply conditions, the International Energy Agency (IEA) said on Thursday, April 12 as demand softens and Saudi Arabia increases output in response to tensions with Iran, Reuters reported. The agency said in its monthly report that there had potentially been a rise in global oil stocks of 1 million barrels per day (bpd) over the last quarter, and the impact on prices had not yet been fully realized. "The cycle of repeatedly tightening fundamentals since 2009 has been broken for now," it said. The IEA, which advises 28 industrialized nations on energy policy, said the possibility that countries, led by the United States, could release stocks from strategic reserves, together with a pledge from top oil producer Saudi Arabia to supply clients ahead of this week's negotiations with Iran over its disputed nuclear program, had tempered recent price gains. Brent crude futures rose to highs not seen since 2008 of $128.40 a barrel in early March, but have since given up those gains to trade at around $120.10 on Thursday. The IEA said it was not surprising that extra barrels were being sent into storage in the typically slacker demand period of March and April, even though the backwardated pricing structure made storing less lucrative. Analysts said that while the report initially suggests a well supplied market, there remain concerns about replacing Iranian crude. Inventories in the OECD industrialized nations saw a weaker-than-average draw of 12.4 million barrels in February to 2.63 billion barrels, according to the IEA. Although stockpiles remain below the five-year average, the smaller draw means the deficit narrowed to 13.9 million barrels from 40.4 million barrels in January. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Titus, Bilirakis lead legislation to sanction Azerbaijani war criminals Representatives Dina Titus (D-NV) and Gus Bilirakis (R-FL) have introduced the bipartisan legislation. Azerbaijan must respect human rights, Scholz tells Aliyev German Chancellor Olaf Scholz has called for greater respect for human rights in Azerbaijan. Armenia: Defense Ministry warns against involving army in political processes The Ministry’s statement came after a video surfaced online, showing soldiers joining the protests in Tavush. Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. |