IEA Members to Accelerate Strategic Oil Reserves Release
International Energy Agency (IEA) member countries will accelerate the release of strategic oil reserves as the Strait of Hormuz crisis continues to weigh on energy markets.
IEA Executive Director Fatih Birol said in a written statement following a meeting of IEA member governments on Wednesday that members agreed to accelerate oil stock releases announced under the collective action launched in March, with a view to completing them as soon as possible.
Birol said members also supported prioritising the release of diesel stocks, where possible, amid continued tightness in diesel markets.
He said participants expressed strong support for the IEA’s response to the energy impacts of the Strait of Hormuz crisis and reiterated their commitment to delivering on the March collective action.
Birol also noted that participants welcomed the recent statement by G7 leaders on global energy security and market stability, while emphasizing the importance of the free flow of energy trade.
Member governments agreed to continue assessing the situation at the next scheduled meeting of the IEA Governing Board next week, Birol said, adding that around 325 million barrels of oil have so far been released under the collective action.
In March, IEA member countries unanimously agreed to make 400 million barrels of oil from their strategic reserves available to the market to offset supply disruptions stemming from the Middle East conflict, marking the largest coordinated stock release in the agency’s history.
Of the pledged amount, around 325 million barrels have so far been released, with some countries releasing more than initially pledged.
Birol said some countries have released more oil than initially pledged, adding that the full release of all stocks pledged but not yet released under the collective action would bring around 100 million additional barrels to the market.
IEA member governments still hold around 1.1 billion barrels of publicly held strategic oil reserves, including more than 200 million barrels of diesel, he said.
Birol added that the IEA stands ready to release more of these stocks to the market if and when required. Oil Prices Ease on Supply Boost Expectation, Brent Dips to $101
