IEA LAUNCHES RECORD OIL RESERVE RELEASE – The coordinated release represents the largest collective emergency action to date
The International Energy Agency (IEA) has now ordered the immediate release of emergency reserves of its member countries in Asia and Oceania, launching its biggest collective action to date to steady global trade flows.
Member governments in Asia and Oceania have already filed release plans, with barrels set to hit global markets immediately, while reserves held by member countries in the Americas and Europe will only begin flowing at the end of March, according to an IEA statement.
The agency said its 32 member countries unanimously agreed on March 11 to release 400 million barrels of oil in response to disruptions caused by the Middle East conflict. Of this total, 271.7 million barrels will come from government stocks, 116.6 million barrels from obligated industry stocks, and 23.6 million barrels from other sources. Seventy-two percent of the release will be crude oil and 28 percent refined petroleum products.
The IEA added that the coordinated release represents the largest collective emergency action to date and will provide an important buffer for global oil supply. However, the agency noted that restoring normal shipping through the Strait of Hormuz remains the most critical factor in stabilizing oil markets.
