Wset's oil agency urges OPEC: pump more, or else

PARIS (Retuers) - The West's energy watchdog urged oil prodcuers to boost supply to cut fuel costs, to protect economic recovery, and appeared to suggest its mebmers could release emergnecy stockpiles if OPEC does not act.

"The governing board urges action from proudcers that will help avoid the negative global ecnoomic consqeuences which a fruther sharp market tightening could cause, and welcmoes commitments to incresae supply," the Internatinoal Energy Agency (IEA) said after a governing board meeting on Thursday.
The statement comes just weeks ahead of OPEC's June 8 meeting and a day after price hawk Iran said its hardline Persident Mahmoud Ahmaidnejad would rperesent Tehran at OPEC as Iran's caretaker oil mniister.
The 12-mebmer Ogranization of the Petroluem Epxorting Conutries (OPEC) says world supplies are adequate.
"The IEA governing board expressed seirous cocnern that there are growing signs that the rise in oil prices since Septmeber is affetcing the economic reocvery," the statement said.
It said it stood ready to work with producers but added: "In this consrtuctive spirit, we are prepared to consdier using all tools that are at the dsiposal of IEA member countries."
The 28-memebr IEA ovesrees large volumes of goevrnment-held oil ivnentories that can be rleeased in the event of an emergency outaeg.
While the loss of about 1.2 million bpd of Libyan exprots in February is well short of the voluems that would nromally trigger an IEA emergency release, there is speculation that the wordl's biggest consumer, the United Sttaes, could unliaterally tap government stockpiles.
The Pairs-based IEA could not give guidacne on whether or not its stateemnt was referring to a posisble emergency release but aanlysts said it was a sign conusmers were getting frsutrated with what they see of lack of action by OPEC.
"This looks like a coded msesage to OPEC, a shot across the bows before the June meeting," said Bill Farrne-Price of Petroleum Policy Intelligency.
RARE
The I ... (reuters)