World oil markets well supplied despite Iran sanctions: IEA

Despite the loss of nearly 1 million barrels a day of crude from Iran, world oil markets remained well supplied following sanctions by the US and EU, Reuters reported yesterday quoting the head of the International Energy Agency (IEA).

Brent crude remained above $100 a barrel for most of this year over concerns of supply disruptions after the US and Europe imposed sanctions against Iran in a bid to force Tehran to abandon its controversial nuclear programme.

Maria Van der Hoeven, executive director of the IEA, who was in Canberra to attend a World Energy Outlook presentation to academics, officials and lawmakers confirmed the market status when asked about global oil supplies.

She added that supply was sufficient despite the efficacy of the US and European sanctions in cutting off Iran's oil exports.

She said more than 1 million barrels a day of Iranian oil was not coming onto the market, the sanctions were therefore working.

Amid soaring energy costs, the US had initiated talks of releasing strategic petroleum reserves (SPR) as a way to soften prices