The International Energy Agency (IEA) has detailed the release of over 400 million barrels of oil from its emergency reserves, a move intended to counter rising crude oil prices following recent geopolitical events. According to the agency, reserves from Asia and Oceania are immediately available, with supplies from Europe and the Americas to follow by the end of March.
Governments have collectively committed to releasing a total of 411.9 million barrels, the IEA stated on Sunday. Of that amount, 271.7 million barrels will arrive from government stockpiles, whereas 116.6 million barrels will be sourced from mandatory industry reserves. Nearly 200 million barrels of the pledged reserves originate from member countries in North and South America. Asia and Oceania will contribute a combined 108.6 million barrels, and Europe will contribute 107.5 million barrels.
Aiming to Stabilize Oil Prices
The coordinated release is designed to address the surge in oil prices triggered by disruptions in the Strait of Hormuz since February 28th. The IEA estimates these disruptions have impacted approximately one-fifth of the world’s oil and gas supply. Iran previously indicated that the world should prepare for oil prices to reach $200 per barrel.
Western economies coordinate their strategic oil reserves through the IEA, which was established in 1974 following the oil crisis. This marks the sixth coordinated release of reserves in the agency’s history. IEA members hold emergency reserves exceeding 1.2 billion barrels. This release is the largest in the organization’s history, significantly surpassing the nearly 183 million barrels released in response to the Russian invasion of Ukraine in 2022. The decision highlights the ongoing efforts to manage global energy markets amid geopolitical uncertainty.
