Acting IEA, OPEC Prepare Vengeance

San Francisco - The failure of OPEC to raise oil output at its last meeting, addressed the U.S. and the IEA to release strategic oil reserves. OPEC oil producers of the world was on fire and plans to retaliate.

"It is shocking and inexcusable," said an official of the Organization of Petroleum Exporting Countries (OPEC) in anger. "The agency (IEA) acts alone, and we do not see the need to release emergency oil."

"We will feel the impact of falling prices. This will cause prejudice against oil producers," said a delegate from the other OPEC members.

Several officials from OPEC countries to quickly hold a meeting, after the world's largest consumer of oil said it would release 60 million barrels of oil, which immediately bring oil prices down sharply. They condemned the unilateral action which was considered and warned of reprisals.

Crude oil for August delivery fell U.S. $ 4.39, or 4.6%, to as low as U.S. $ 91.02 a barrel on the New York Mercantile Exchange. After touching its lowest level at U.S. $ 89.69 per barrel of oil closing sebelumnya.Ini is the lowest figure since February 18.

As is known, the U.S. and other members of the International Energy Agency (IEA) will release 60 million barrels of oil to world markets next month. The product will come from the strategic oil reserve (Strategic Petroleum Reserve), which currently has the highest level of capacity of 727 million barrels.

The IEA said that this action aims to protect the global economic recovery by filling out the sustainability of the production shortfall from the loss of Libya, due to civil war. The decision also came up in response to political pressures from rising gasoline prices and fears of the impact of high prices on consumption trends.

The IEA, which coordinates emergency oil stock policies with 28 members, said it had been consulted about the plans the release of oil by major oil producers, OPEC and the major consumers, including China.

"The action taken today is being done in full consultation with the major producer countries. It is intended to complement the efforts of many countries, including Saudi Arabia." Thus said a senior official in the Obama administration.

For some members of OPEC, the IEA plans to add injury to the OPEC meeting earlier this month. Because the United States, which is the world's biggest oil consumer, has requested assistance from Saudi Arabia, OPEC's biggest oil exporter, to fill the supply shortfall left by Libya.

Still fresh in memory, Saudi Arabia at the last OPEC meeting yesterday, failed to persuade the other members at a policy meeting this month to increase output collectively. However, Saudi Arabia has expressed to unilaterally increase the production of 1 million barrels per day, a controversial step that painful for OPEC.

OPEC said the divisions among its members has more to do with the economy, rather than politics, although this year's unrest in the Middle East and North Africa have deepened divisions within the group. "The global economy has not turned enough to justify more oil supply," OPEC delegate said.

"If we see a glut or a decline in prices, OPEC will normally be immediately held an emergency meeting to fix it," he added.

Their reluctance also triggered some OPEC countries that still need high oil prices to cover rising costs. They have increased spending this year to create jobs and build more housing. Merrill Lynch said in an April research that Saudi Arabia now needs U.S. $ 95 per barrel to cover costs, after announcing a U.S. $ 129 billion current budget.

Saudi Arabia-related measures increase oil production 1 million barrels per day, the IEA said these figures showed the kingdom had increased production about 500 thousand barrels per day. Kuwait also said it could raise production to 200 thousand barrels per day this summer.

However, before the increase in output is realized, the IEA felt the need to anticipate. One way is to release strategic oil supplies. "This step was taken to make up for delays in the supply of Arabia before the high price of oil hit the market.", Said IEA Executive Director Nobuo Tanaka.

Amid controversy, a member of OPEC, Nigeria precisely addressing the IEA plan with cool calm. According to state-owned oil company Nigerian National Petroleum Corp.., Release of oil by 60 million barrels of oil to this market, does not alter the production of the country, because more inventory will still be needed.

"The decline in crude oil prices since the announcement of the IEA, suggests that speculators, who have been heat up the market, running scared," NNPC spokesman Levi Ajuonuma. "In the long run the IEA still need to stock, so there is still a need for production."