Stabilization of oil prices. What the International Energy Agency proposes
11 March 14:00
The International Energy Agency proposes to release strategic oil reserves to stabilize global prices, which have risen sharply after the US and Israeli military operation against Iran. This was reported by The Wall Street Journal, citing informed officials, according to "Komersant Ukrainian".
According to them, this involves the possible release of more than 182 million barrels of oil from strategic reserves. This exceeds the volumes that the IEA released onto the market in 2022 after the start of Russia’s full-scale invasion of Ukraine.
The sources emphasized that the idea was discussed on March 10 during an emergency meeting of representatives of the energy departments of 32 IEA member states. It is expected that the organization may put the issue of using reserves to a vote as early as March 11, but unanimous support from all members is required for the decision to be adopted, they added.
Officials noted that such a move should help mitigate the risks of an oil crisis and lower global oil prices, which have risen by about 40% since the start of the operation against Iran.
According to IEA Executive Director Fatih Birol, the agency’s member countries have about 1.2 billion barrels of oil in strategic government reserves, with another 600 million barrels stored in mandatory commercial reserves. According to preliminary estimates, this volume would be sufficient for approximately 124 days to compensate for the loss of oil supplies from the Persian Gulf.
The International Energy Agency (IEA) is an organization that brings together developed countries to coordinate energy policy and respond to crises in global energy markets. Its members include the EU, the US, Japan, Canada, Australia, and other partner countries.
