Overview:
Global energy markets receive a 400 million barrel boost from IEA emergency stocks to counter production cuts and shipping delays in the Strait of Hormuz.
PARIS — The 32 member countries of the International Energy Agency agreed Thursday to release 400 million barrels of oil from emergency reserves to stabilize global markets following conflict in the Middle East.
The unanimous decision came during an extraordinary meeting convened by IEA Executive Director Fatih Birol to address significant supply disruptions.
Birol said the oil market is facing challenges unprecedented in scale. He noted that energy security is the founding mandate of the agency and praised members for taking decisive action.
The coordinated release marks the sixth such action in the history of the IEA, which was established in 1974. Previous collective releases occurred in 1991, 2005, 2011 and twice in 2022.
Current disruptions stem from a conflict that began Feb. 28, which has impeded oil flows through the Strait of Hormuz. Export volumes of crude and refined products are currently at less than 10 percent of pre-conflict levels, forcing regional operators to curtail production.
IEA members hold emergency stockpiles of more than 1.2 billion barrels. An additional 600 million barrels of industry stocks are held under government obligation.
The agency said the emergency stocks will be released based on the national circumstances of each country and may be supplemented by further measures.
The IEA Secretariat said it will provide additional details on the timing and implementation of the release as it continues to monitor global oil and gas markets.