International Energy Agency said Wednesday that its 32 member nations have agreed unanimously to release 400 million barrels of crude from emergency stockpiles, the largest coordinated drawdown ever undertaken by the agency and only the fifth time it has activated such a measure.
In a statement, IEA Executive Director Fatih Birol said the move is intended to stabilize energy markets following disruptions linked to developments in the Middle East and the shutdown of the Strait of Hormuz. The agency noted that the timing and pace of the releases will vary depending on the circumstances and policies of each member country.
Birol warned that the situation carries “major implications for jet fuel supply and diesel, in particular”, while describing conditions in natural gas markets as extremely challenging. He added that the reserve release is meant to provide immediate support to energy markets while emphasizing the importance of restoring shipping through the Strait of Hormuz.
The IEA secretariat said further details about the implementation of the coordinated action will be announced later. The agency also confirmed it will continue closely tracking developments in global oil and gas markets.
According to the IEA, member countries collectively hold about 1.2 billion barrels of crude in government-controlled emergency reserves, in addition to roughly 600 million barrels stored in mandatory commercial inventories.
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