IEA concerned by Venezuela move against Exxon

HOUSTON (Reuters) - The head of the International Energy Agency on Tuesday said he was concerned by Venezuela's decision to stop oil sales to top U.S. oil company Exxon Mobil (XOM.N) and was watching the situation closely.

"We have the concern on the physical side of the event and are carefully watching," IEA Executive Director Nobuo Tanaka told reporters at the CERA Week conference shortly after the South American country suspended oil exports to Exxon Mobil.

"If there is a risk of a physical disruption we are happy to move," Tanaka said.

The IEA, energy advisor to 27 industrialized nations including the United States, coordinates the release of global crude oil and refined product stockpiles in the event of a major supply disruption.

The last time the IEA released stocks was after two hurricanes slammed into the U.S. Gulf Coast in 2005.

Exxon Mobil won temporary court rulings freezing up to $12 billion in Venezuelan assets in a fight over payment for the nationalized heavy crude project.

But Venezuelan state oil company PDVSA said it would not break certain contracts with Exxon, an apparent reference to the jointly owned Chalmette refinery in Louisiana.

It was not immediately clear what PDVSA would do with the excess crude that would normally go to Exxon Mobil.

Venezuela's announcement pushed oil prices higher in late trading on Tuesday, after prices declined during regular activity. Oil had surged on Monday after Chavez threatened to curtail oil supplies to the United States.

(Reporting by Chris Baltimore)