UPDATE: EU To Agree To Strengthen Emergency Oil Stocks Rules
(Adds background, details.)
BRUSSELS -(Dow Jones)- The European Union is expected to agree Friday to
strengthen rules on emergency oil stocks and to publish data on commercial
stocks every month, in an effort to increase both its readiness for any
potential energy crisis and transparency in the commodities market.
While the European Commission still has some reservations, all 27 E.U.
countries back the proposal that will be discussed by energy ministers at a
meeting in Luxembourg Friday, sources close to the negotiation said.
The new legislation will align E.U. rules on emergency stocks to those of the
International Energy Agency.
The commission shall publish "a monthly statistical summary of the commercial
stocks," the draft reads.
E.U. countries' emergency oil stocks should equal "at the very least" 90 days
of average daily net imports, or 61 days of average daily consumption, whichever
is greater, according to the draft document to be discussed Friday.
Governments may create a specific "central stockholding entity" to keep the
emergency stocks, or delegate the task to energy companies. Each country has to
ensure it has a procedure to promptly release the stocks in case of a "major
supply disruption," the draft reads.
The E.U. is heavily dependent on oil and gas imports. Russian cuts in gas
supply to Ukraine as recently as January heavily affected the 27-country bloc
and made the need for emergency procedures more urgent. Russia recently warned
the E.U. its future supply reliability is dependent on the ability of Ukrainian
state gas company Naftogaz to pay for its gas.
-By Alessandro Torello, Dow Jones Newswires; +32 2 741 14 88;
alessandro.torello@dowjones.com
(END) Dow Jones Newswires
06-11-090921ET
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