The International Energy Agency (IEA) is closely monitoring developments in the Strait of Hormuz, including the recent seizure of a U.K.-flagged oil tanker, and stands ready to act if needed, the agency said in a statement late Monday.
The agency explained that the right of free energy transit is critical to the global economy and must be maintained.
The Strait of Hormuz is a vital maritime transit route for global energy trade. About 20 million barrels of oil transit each day through the Strait equivalent to about 20% of the world's supply.
"It is also the route for around a quarter of global liquefied natural gas trade," the IEA highlighted.
It added that consumers can be reassured that the oil market is currently well supplied, with oil production exceeding demand in the first half of 2019, pushing up global stocks by 900,000 barrels per day.
Furthermore, the commercial stocks of the Organization for Economic Co-operation and Development now total more than 2.9 billion barrels, or higher than the five-year average.
"IEA countries hold 1.55 billion barrels of public emergency oil stocks. In addition, 650 million barrels are held by industry under government obligations, and can be released as needed. These IEA emergency stocks are large enough to cover any disruptions in oil supply from the Strait of Hormuz for an extended period," the agency said.
By Gulsen Cagatay