High global oil prices are a cause of concern for the International Energy Agency (IEA), the head of the body which represents 28 importing countries said, although crude markets were better supplied than those for refined fuels.
"Crude markets are reasonably well supplied but there are clearly signs of tightening in product markets," IEA Executive Director Maria van der Hoeven said in response to questions from reporters on Tuesday over a possible release of emergency stocks.
"We are monitoring the markets as we always do. We are in touch with our members as we always do and we stand ready to respond as necessary," she said.
Brent crude futures rose for a fourth day to above $116 per barrel on Tuesday, nearing levels of $128 seen in March that prompted Washington to seek support from allies to keep gasoline prices in check and keep the pressure on revenues of Iran from sanctions on its oil exports.
Products prices have climbed on a combination of factors, including an explosion that shut Venezuela's Amuay refinery last month and worries over the impact of Hurricane Isaac on the U.S. Gulf coast, as well as tight supplies in Asia.
Calls for a release of emergency stocks are swelling and the United States had requested such a move with backing from Britain and France, an Italian official said last week.
G7 finance ministers have also said they were ready to call on the IEA to take action.
But Germany and Italy remain opposed to any release of stocks, senior government sources have said, keeping the standoff between leading members of the IEA on strategic oil stocks policy.
Van der Hoeven said last week higher prices alone did not justify a release of strategic reserves and that crude output had adjusted to the loss of Iranian barrels. Tehran's exports have slid as western sanctions aimed at curbing its nuclear plans bite.
Van der Hoeven added that IEA member countries could unilaterally release stocks provided they kept above a 90-day obligation.
