IEA Members Back Accelerated Release of Emergency Oil Reserves to Combat Soaring Energy Prices

Members of the International Energy Agency (IEA) expressed support on Wednesday for accelerating the release of roughly 100 million barrels of reserve oil stocks previously agreed to in March. About 325 million barrels of oil have been released under the March agreement to ease oil markets after the onset of the Iran war led to a surge in energy prices. The IEA also said members had agreed to prioritise the release of diesel stocks.

Member countries still hold roughly 1.1 billion barrels of emergency oil stocks, including more than 200 million barrels of diesel. Executive director Fatih Birol stated in a release that the IEA stands ready to supply more of these reserves to the market if and when required, while participants expressed strong appreciation for the organization's response to the energy impacts of the Strait of Hormuz crisis.

Mr Birol noted that members welcomed last week's statement by G7 leaders on global energy and security, and agreed to assess the situation at the IEA governing board meeting next week. G7 member countries previously agreed to release 100 million barrels of diesel and other reserves through the IEA following pressure from US President Donald Trump's administration.

Conflicts in Ukraine and the Middle East have triggered a global surge in fuel prices, adding to pressure on Mr Trump ahead of November's midterm elections. On Monday, he signed an executive order waiving restrictions on cheaper red-dyed diesel to ease costs for lorry drivers. Diesel prices have risen to more than $6 per gallon in recent weeks, up from $3.60 per gallon last year, while Europe has seen prices hit a record of €2.24 per litre. The US is currently executing a 172-million-barrel drawdown from its strategic petroleum reserve, which is projected to fall to its lowest levels since 1982 once completed.