Due to shortages: IEA prepares to release new oil reserves
23 March 13:11
The International Energy Agency is consulting with the governments of member countries to release more oil from strategic reserves if necessary.
This was reported by Reuters, citing IEA Executive Director Fatih Birol.
The IEA is an agency within the Organization for Economic Cooperation and Development (OECD). The agency provides advice and analysis on energy security in member countries, which include most developed European nations, as well as the United States, Canada, Japan, South Korea, New Zealand, and Australia.
“If this (additional release of reserves – EP) is necessary, we will, of course, do so. We are monitoring the situation, analyzing and assessing the markets, and discussing this with our member countries,” Birol said.
He also noted that there is no specific oil price level that would trigger the release of reserves.
“Releasing reserves will help calm the markets, but it is not a solution. It will only help mitigate the negative impact on the economy,” said the IEA director.
Birol described the current crisis in the Middle East as “very serious” and worse than the two oil shocks of the 1970s and the impact of the war between Russia and Ukraine on the oil and gas market combined.
He also noted that, in addition to releasing reserves, IEA member countries could reduce speed limits, implement work-from-home policies, or cut energy consumption at the national level.
As a reminder, on March 11, IEA member countries jointly decided to release 400 million barrels of oil from their strategic reserves to curb rising energy prices amid the war in the Middle East.
