Guinness: IEA will not repeat ‘dangerous' intervention

Guinness Asset Management has labelled recent intervention in oil markets by the International Energy Agency (IEA) as a one-off and predicted it will not take similar action in future.

Oil prices dropped to a four month low last week after the IEA announced plans to inject an extra 60 million barrels of oil into the market, with the price of benchmark London crude falling $6, or 5%, to $108, initially. Officials said the extra supply would replace the one million barrels of oil per day lost as a result of the Libyan civil war. Market participants had a different view, stating it was likely motivated by efforts to stem escalating oil prices – which hit $122 per barrel in April – in order to protect longer term demand. Tom Nelson, co-manager of the Guinness Global Ene...