Energy Agency ready to release more oil reserves

Member countries of the International Energy Agency could release additional oil reserves onto the market if necessary. The agency’s Executive Director, Fatih Birol, said so after countries agreed to the largest release of strategic reserves in the organisation’s history.

Member states have made approximately 400 million barrels of oil from strategic reserves available. According to Birol, however, more than 1.4 billion barrels remain in the countries’ emergency reserves. He said the current release will reduce total emergency reserves by only about one fifth.

Oil from strategic reserves is already flowing to Asia. The decision to release the reserves came amid rising oil prices linked to the US–Israeli war against Iran and disruptions to supplies in the Persian Gulf region.

According to the head of the International Energy Agency, the volume of oil supplies currently offline exceeds the loss of supplies during the 1973 oil crisis. At the same time, the disruption is greater than any other significant supply shock since that period.

The intergovernmental organisation was established in 1974, a year after the oil crisis, and brings together 32 countries from different parts of the world.

Oil prices fell on Monday despite attacks on oil production in the Persian Gulf and US President Donald Trump’s call for international efforts to secure the Strait of Hormuz.

(Reuters, Max)