The IEA emergency oil reserves release will begin soon as governments move to counter a sharp rise in crude prices linked to the Iran war. According to Al Jazeera, more than 400 million barrels from the International Energy Agency’s emergency reserves are set to enter the market under the agency’s most detailed rollout plan to date.
The agency said stocks from Asia and Oceania will be available immediately. Meanwhile, supplies from Europe and the Americas are scheduled to become available at the end of March.
Governments have committed to releasing 271.7 million barrels from government stocks, 116.6 million barrels from obligated industry stocks, and 23.6 million barrels from other sources. That combined total forms the core of the planned emergency response.
IEA Emergency Oil Reserves Release by Region
The largest share of the pledged reserves will come from member countries in the Americas. The region has committed 195.8 million barrels, including 172.2 million barrels from government stocks.
Asia and Oceania countries have pledged 108.6 million barrels, of which 66.8 million barrels will come from government stocks. Europe has committed 107.5 million barrels, including 32.7 million barrels from government stocks.
The IEA also said 72% of the planned release will be crude oil, with the remaining 28% oil products.
Why the IEA is releasing emergency stocks now
The release is aimed at easing the oil price spike caused by disruptions along the Strait of Hormuz since the war began on February 28. Those disruptions have affected around a fifth of the global oil and gas supply.
The IEA was created in 1974 after the oil crisis, and this marks the sixth coordinated stockpile release in its history. The move underscores how serious the agency views the current pressure on global energy markets.
Iran also warned that the market should be ready for oil at $200 a barrel as its forces continue to strike merchant ships on the strait. That warning has added to concerns over supply security and price volatility.
IEA members hold emergency stockpiles of more than 1.2 billion barrels. In addition, another 600 million barrels are held in industry stocks under government obligation.
