IEA says low inventories threaten crude price stability

The Associated Press

World oil production jumped by 1 percent in August, led by a partial revival in Iraqi output, but low inventories in major importing countries threaten price stability, the International Energy Agency said Sept. 10.

Global output rose 798,000 barrels a day to 79.69 million barrels, with Iraq contributing almost half of the increase despite chronic sabotage of one of the country's two export pipelines. Russia, Kazakhstan and other non-OPEC producers kicked in much of the balance, the Paris-based agency said.

Although prices remained firm in August, historically low inventories leave the market more vulnerable to price swings triggered by economic uncertainty, bad weather and small supply disruptions. A recent easing of crude prices has taken pressure off the Organization of Petroleum Exporting Countries to boost output when its members meet to assess their production quotas on Sept. 24, the IEA said in its monthly oil market report.