The International Energy Agency (IEA) said more than 400 million barrels (mmbbl) of oil from emergency reserves will start entering global markets soon as part of a coordinated effort to ease a surge in crude prices following the outbreak of the Iran war, Reuters reported.
The agency said oil stocks held by countries in Asia and Oceania will be made available immediately, while supplies from Europe and the Americas are expected to reach the market by the end of March.
According to the IEA, governments have pledged to release 271.7 mmbl from state-controlled reserves, alongside 116.6 million barrels from industry-held compulsory stocks and another 23.6 mmbbl from other sources.
State-controlled reserves are oil stocks owned and stored by governments as part of their strategic emergency reserves. Countries release them during supply crises or price spikes. While Compulsory stocks are reserves that private companies are legally required by governments to hold to ensure an emergency supply. Both types are coordinated internationally through the IEA to stabilize the market during major disruptions.
The largest share of the pledged volumes comes from the Americas, whose member countries committed 195.8 mmbbl, including 172.2 mmbbl from government reserves. Countries in Asia and Oceania have pledged 108.6 mmbbl, of which 66.8 mmbbl will come from government stocks, while European members have committed 107.5 mmbbl, including 32.7 mmbl from government reserves.
The IEA said about 72% of the planned release will consist of crude oil, while the remaining 28% will be refined petroleum products.
Western economies coordinate strategic petroleum reserves through the IEA, which was established in 1974 following the 1973 Oil Crisis. The current action marks the sixth coordinated emergency stock release in the agency’s history.
The release is intended to stabilize markets after disruptions affecting roughly one-fifth of global oil and gas supply moving through the Strait of Hormuz since the conflict began on February 28, the agency said.
