IEA Countries Release 400 Million Barrels of Oil from Strategic Reserves
The 32 member countries of the International Energy Agency (IEA) decided on Wednesday 'unanimously' to release 400 million barrels of oil from their strategic reserves onto the market, the largest release in their history, the institution announced.
TL;DR
- 32 IEA member countries unanimously agreed to release 400 million barrels of oil from strategic reserves.
- This is the largest release of emergency oil reserves in the history of the IEA.
- The release is intended to compensate for supply losses due to the closure of the Strait of Hormuz.
- The Strait of Hormuz is a crucial passage, accounting for approximately 25% of global maritime oil transport.
- Emergency reserves will be made available according to a schedule adapted to each member country's national situation.
- The announcement coincides with G7 leaders discussing the economic repercussions of the war in the Middle East.
- US commercial crude inventories increased slightly more than expected, but EIA figures do not yet show significant disruption from the Middle East conflict.