US economic data to weaken on IEA's move: Commodity Broking

To push down fuel prices and underpin the global economy, oil consumer nations announced a surprise release from strategic government petroleum stockpiles. International Energy Agency (IEA) would release 60 million barrels a day over an initial 30 days to fill up the gap left by disruption to Libya's output.

In an interview with CNBC-TV18, Jonathan Barratt, MD of Commodity Broking Services feels that IEA has taken a large move by planning to increase the global supplies to 60 million barrels a day. He said, "IEA's move is designed to lower primary inputs to economies. Therefore, we would see weak economic data due to move."

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He further added, "Markets will interpret this announcement more as positive for the price of crude, than continued negative news."

Below is the verbatim transcript of the interview. Also watch the accompanying video.

Q: What did you make of the big slippage in crude and the news from IEA?

A: It was something that nobody expected the IEA to increase global supplies about 60 million barrels a day. It