International Energy Agency Members to Release Up to 100 Million Barrels from Reserves

Member countries of the International Energy Agency have decided to use their strategic reserves. The move concerns oil and diesel, which will become available amid reduced market supply and sharply rising prices.

In total, around 100 million barrels could be used. This is not an addition of new volume under the new decision — countries will simply begin drawing on already approved reserves sooner than planned.

Special attention will be given to diesel, as its shortage is particularly notable in Europe. France will release 10 million barrels of diesel from its own strategic reserves. The situation is further complicated by new attacks in the Middle East. Houthi forces struck Aden airport with rockets and drones, while Ukraine carried out a strike on two Russian oil facilities.

An additional risk to the market comes from a hurricane expected in the Gulf of Mexico. The region accounts for about 15% of US oil production, so the bad weather could temporarily reduce output.

Source: Reuters