IEA announces largest ever, 400M barrels oil reserve release

Investing.com -- The International Energy Agency announced Wednesday that its 32 member countries unanimously agreed to release 400 million barrels of oil from their emergency reserves, marking the largest such release in the organization's history and only the fifth time this measure has been implemented.

IEA Executive Director Fatih Birol said in a statement that the decision aims to eliminate market disruption caused by the events in the Middle East and the closure of the Strait of Hormuz. The release will take place over a timeframe appropriate to the national circumstances of each member country, according to the agency.

Birol also cited "major implications for jet fuel supply and diesel, in particular", while describing the situation in natural gas markets as very challenging. He noted that the current release is aimed at providing immediate relief while calling for the resumption of traffic through the Strait of Hormuz.

The IEA secretariat said it will provide further details on how this collective action will be implemented in due course. The agency added that it will continue to closely monitor global oil and gas markets.

IEA members currently hold 1.2 billion barrels in public stocks, plus another 600 million barrels in mandatory commercial inventories.

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