- America and Europe begin to release reserves from the end of March.
- The IEA releases 271.7 million barrels to cushion the rise in oil prices.
- The agency urges insurance and protection to restore Hormuz shipping.
Strategic oil reserves will be released “immediately” in Asia and Oceania, and already at the end of March in America and Europe, the International Energy Agency said on Sunday.
IEA members agreed on March 11 to tap oil reserves to cushion rising prices caused by the war in the Middle East, in the largest response of its kind ever.
“Member countries have submitted individual implementation plans to the IEA. These plans indicate that IEA member countries in Asia Oceania will make reserves available immediately,” the IEA said.
“Stocks from IEA member countries in America and Europe will be available from the end of March,” he added.
The IEA said a total of 271.7 million barrels of government-managed reserves would be released worldwide.
“The war in the Middle East is creating the largest supply disruption in the history of the global oil market,” he said.
The emergency release of reserves, the sixth in the world energy body’s history and the first since Russia invaded Ukraine in 2022, is called a “significant and welcome buffer.”
The announced launches have not had a significant impact on the price of oil, which is around $100 a barrel, the highest since 2022 and compared to less than $70 before the start of the war.
The IEA added that “the most important factor in ensuring a return to stable flows is the resumption of regular shipping transit through the Strait of Hormuz.”
Iran has effectively blocked the strategic strait since the war began on February 28 with US and Israeli airstrikes against Iranian targets.
“Adequate insurance mechanisms and physical protection for maritime transport are key to the resumption of flows,” the IEA stated.
