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IEA pricks oil’s bubble by releasing strategic stocks

The IEA’s release of crude from strategic stocks is less about Libya than about the global economy – and it should send oil prices tumbling

THE International Energy Agency (IEA) has been saying since the turn of the year that oil prices were too high for the world economy. Today it acted to crash the market. Announcing the release of 60 million barrels of crude oil – or 2 million barrels a day for the next 30 days – the IEA said it was replacing output lost during Libya’s conflict. The war there has starved the market of quality oil and supported Brent prices. The IEA claimed 132 million barrels have been lost since the start of May.   The stock release immediately put the skids under oil prices. Brent fell to below $106 a barrel, before staging what will surely be a short-lived recovery to around $108/b. But for

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