IEA to consider release of more oil reserves as Iran war keeps prices high

"Despite this huge release, we still have a lot of stocks left. This current stock release, once it is completed, will reduce the emergency stocks in IEA countries only by about 20%. Birol warned that although the emergency reserves would provide a buffer for now, it was vital to reopen the strait of Hormuz to allow Gulf oil and gas to reach the global market."

"About 100m barrels of emergency oil stockpiles will be made available to buyers in Asia this week in the first release from a planned 400m barrel deluge of crude into the global market to make up for the lost exports from Gulf nations, which has caused global oil prices to surge by 40% this month."

"Fatih Birol, the head of the International Energy Agency, said its members continued to hold large reserves of emergency oil stocks even after agreeing to the biggest release of government crude in the history of the market, meaning more emergency oil reserves could still be released as and if needed."

The International Energy Agency is considering releasing further emergency crude oil stocks to address rising global oil prices caused by disruptions in the Strait of Hormuz. After agreeing to the largest government crude release in market history, IEA members retain substantial emergency reserves available for additional releases if needed. A 400 million barrel release is planned, with 100 million barrels made available to Asian buyers weekly. Despite this massive intervention, the release will reduce IEA emergency stocks by only 20%. IEA head Fatih Birol emphasized that reopening the Strait of Hormuz remains critical for restoring normal Gulf oil exports to global markets. Oil prices surged 40% this month due to lost exports, with Brent crude trading around $100-106 per barrel.

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