In a defensive move, the International Energy Agency (IEA) on Sunday presented a detailed timetable for the release of more than 400 (411.9) million barrels of oil — a record amount — from emergency stocks. This is the most detailed record of the “blow-up” business, which has soared since the outbreak of the .
The timing and sources of stocks
Governments of IEO countries have pledged to make available 271.7 million barrels of oil from government reserves, 116.6 million barrels from mandatory industry reserves and 23.6 million barrels from other sources, the statement said.
According to the same update, the stocks from the countries of Asia and Oceania will be available immediately, while the oil from Europe and the Americas will be pumped into the market at the end of March.
Overall, governments have committed to:
- 271.7 million barrels from government reserves.
- 116.6 million barrels from mandatory industrial reserves.
- 23.6 million barrels from other sources.
The lion’s share comes from the Americas (195.8 million barrels), while Asia-Oceania and Europe contribute about 108 million barrels each.
“Shield” against inflation and the crisis in the Straits of Hormuz
The move is the sixth coordinated release of reserves in the history of the IEA, since its inception in 1974. The aim is to fill the gap created by the disruption of nearly a fifth of the world’s oil and natural gas supply through the Strait of Hormuz.
“The world must be ready for oil at $200,” Iran warned on Wednesday, as its forces continued to target merchant ships in the strategic passage.
The composition of the intervention
Last week, the 32 member countries of the International Energy Agency, including the US, decided to proceed with this release, to soften the economic consequences of the war in the Middle East.
The intervention is not only about crude oil. The IEA clarified that 72% of the planned releases will be in the form of crude, while the remaining 28% will be refined petroleum products (gasoline, diesel, etc.), in order to directly support consumption.
Despite the size of the operation, IEA members still maintain significant “warfare”, as they have total strategic reserves exceeding 1.2 billion barrels.
