29 August 2017, Sweetcrude, Houston, Texas – The International Energy Agency, IEA, has said it “does not see a need to act” yet as regards to the widely reported disruption in the United States’ oil production since Hurricane Harvey hit the country on Friday.
According to a publication on the agency’s website on Tuesday tilted ‘IEA closely monitoring situation after Hurricane Harvey’, it said it is too early to know the effect of the flood on U.S oil production and refining.
“It is too soon to know how long oil production and refining operations will be disrupted, or the extent of the damage.”
IEA said the market still has enough stock supply to cover up for the disruption, assuring that the group is on top of its game.
“However, for now, the IEA does not see a need to act as the market is amply supplied. Oil stocks, both crude and products, are well above the five-year average, in the United States as well as globally. The IEA is monitoring the situation caused by Hurricane Harvey very closely and is in contact with authorities in the United States,” it said.
“The situation is being reviewed constantly and the IEA stands ready to act as required”, it added.
IEA’s response came following reports by Platts, Forbes, including Reuters, on the losses U’S energy sector has incurred since the hurricane hit at the weekend.
According to Platts, the U.S had lost production of 2.2million barrels per day of refining capacity to the storm.
Forbes said the flood had forced Houston-area refineries to shut down since Sunday, while refineries in Corpus Christie also closed down operations.
The Megellen Midstream pipeline was also reported to have suspended operations on their Bridge Tex and Longhorn pipelines.
Kinder Morgan has also shut down “select system” of its 300, 000 barrels per day crude pipeline in Texas.