- The German Ifo Institute warns of the possible depletion of world oil reserves.
- The world’s oil reserves must be used very carefully and responsibly.
- The International Energy Agency releases 400 million barrels of oil.
- Strategic reserves are not meant to replace supplies in the long term, and price increases do not yet threaten the economy.
The German economic institute Ifo warns that if the war in Iran lasts longer, the world’s oil reserves could be exhausted already this summer. If 25 percent of normal oil supplies are unavailable because of the war and the Strait of Hormuz remains closed, it means “then we have three months of strategic reserves worldwide,” said Clemens Fuest, president of the Munich-based institute. TASR informs about it based on the report of the DPA agency.
Therefore, it is important to handle the reserves carefully, the economist added. “Since we don’t know if this war will escalate and if it won’t last for several months, the question is whether it is right to release reserves so soon,” povedal Fuest.
The International Energy Agency (IEA) announced on Wednesday (11/03) that it will release 400 million barrels (1 barrel = 159 liters) of oil in an effort to moderate rising prices. According to IEA data, this represents a third of the oil reserves of the 32 member states, totaling approximately 1.2 billion barrels. The purpose of the reserves is not to permanently compensate for supply shortfalls, Fuest pointed out. The current rise in energy prices does not yet cause really big problems, the economist concluded.
