IEA chief: global energy security is at risk if Strait of Hormuz doesn't open within weeks

Fatih Birol, Executive Director of the International Energy Agency, said that if the U.S., and 'Iran, don't increase oil flow through the Strait of Hormuz, the world should be concerned about its energy security.

Birol said at a Council on Foreign Relations meeting that "oil security remains a crucial issue." "We should worry, and I'm worried, if things don't improve in the coming weeks."

Since the?conflict started on February 28, when U.S. and Israeli attacks on Iran began, the Strait of Hormuz has been largely blocked.

Birol stated that despite sharp increases in energy prices, several factors had?moderated this rise. Birol said that despite sharp increases in energy prices, several factors have?moderated the rise.

But these fixes "cannot?last forever," Birol said, who said that the Iran War is the worst disruption of energy in history.

Birol said that the United States' increased production, as the world's largest oil and gas producer has been a major factor. "The U.S. production increase is excellent... He said that the U.S. could not increase crude oil production by 10 million barrels per day, but only increased it by 1 million or 2 million.

He said that the oil and gas crisis had hurt economies all over the world in an asymmetrical way.

He said that the Strait of Hormuz was responsible for 80-90 percent of Asia's energy. He said that Japan and South Korea have suffered the most, but other developing countries such as Pakistan, Bangladesh, and India were also affected.

Birol has highlighted the potential health risks to people in developing countries. This includes women who are using alternative fuels such as dung and wood, which emit more harmful emissions, because petroleum products have become expensive.

Oil prices dropped by about $20 a barrel after the coordinated IEA release of March. The action signaled?to markets that the organization representing over 30 countries?could?tap reserves again if the situation worsens. Birol stated that the 400-million barrel release was "only 20% of our stocks, and 80% are still in our pockets." (Reporting and editing by Chris Reese, Cynthia Osterman, and Timothy Gardner)

(source: Reuters)