By Peg Mackey and Richard Mably
LONDON | Fri Jan 6, 2012 5:12pm EST
(Reuters) – Western powers this week readied a contingency plan to tap a record volume from emergency stockpiles to replace nearly all the Gulf oil that would be lost if Iran blocks the Strait of Hormuz, industry sources and diplomats told Reuters.
They said senior executives of the International Energy Agency (IEA), which advises 28 oil consuming countries, discussed on Thursday an existing plan to release up to 14 million barrels per day (bpd) of government-owned oil stored in the United States, Europe, Japan and other importers.
Action on this scale would be more than five times the size of the biggest release in the agency’s history — made in response to Iraq’s 1990 invasion of Kuwait.
The maximum release, some 10 million bpd of crude and about 4 million bpd of refined products, could be sustained during the first month of any coordinated action, the plan says.
“This would form a necessary and sensible response to a closure of the strait,” a European diplomat told Reuters. “It wouldn’t take long to put in place if it was required … and would be unlikely to prove controversial amongst the (IEA) membership.”
A spokesman for the IEA confirmed that the Paris-based agency has an existing contingency plan that outlines a maximum stock release capability of 14 million bpd for a month. “We’re watching the situation carefully,” he said of Iran.
Tehran announced plans on Friday for new military exercises in the world’s most important oil shipping lane, through which some 16 million barrels of crude pass each day.
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i can’t believe all the western powers want to blow off their own toes to spite their foot. what they should be saying is, “we’re gonna pick a fight with china, russia,and iran,vs usa, euro. shoot out at the lazy ahmadinglenuts corral. posted on you tube of course, and commercial free…….