The International Energy Agency said member countries have so far released about 325 million barrels of oil and petroleum products from emergency reserves, representing more than 80% of the total 400 million barrels they pledged to release in March to address supply disruptions caused by the war in the Middle East.
The agency’s largest coordinated drawdown
The agency’s Executive Director, Fatih Birol, said the released volumes were part of the collective action announced by the agency on March 11 and represented the largest coordinated drawdown from emergency reserves in its history.
According to figures released by the agency, the release of 325 million barrels means that about 75 million barrels of the volume pledged in March have not yet been released.
Pressure on diesel supplies
Energy markets are facing mounting pressure, particularly in the diesel market, as shipping disruptions through the Strait of Hormuz continue and supplies decline, compounded by the impact of Ukrainian attacks on Russian refineries.
Birol said the Strait of Hormuz crisis continued to place significant pressure on energy markets, particularly diesel supplies. The agency said Ukrainian attacks on Russian refineries had tightened supply and pushed prices higher.
G7 agreement
The agency’s announcement came after G7 leaders agreed to release 100 million barrels of oil and petroleum products from emergency reserves in a move aimed at easing pressure on supplies and fuel prices.
The volumes are scheduled to be released over four months, with a large portion of diesel supplies to be delivered during the first 20 days. The G7 did not clarify whether the 100 million barrels included the 75 million barrels remaining from the IEA’s March pledge or represented additional volumes on top of the previous commitment.
The group’s countries also agreed to coordinate refinery maintenance schedules and refrain from imposing restrictions on energy exports among themselves. The leaders asked the IEA to monitor implementation of the new measures and provide an assessment of their impact on markets within 20 days.
