Int. Energy Agency confirms 2nd joint oil emergency stock release

By Sibel Morrow

ANKARA (AA) - International Energy Agency (IEA) member countries confirmed on Thursday the release of 120 million barrels of oil from emergency stocks in response to the significant oil market restraints from Russia’s invasion of Ukraine.

Considered the largest stock release in IEA history, the move came after the emergency oil release on March 1 of a collective 62.7 million barrels.

At the start of Russia’s invasion, the IEA said member countries held 1.5 billion barrels in public reserves and about 575 million barrels under obligation in the industry.

The two IEA collective releases from member countries so far this year of 62.7 million barrels and 120 million barrels represent 9% of the total emergency reserves.

Commitments submitted by member countries totaled 120 million barrels for release over a six-month period, demonstrating strong unity.

The US will be the largest contributor with about 60 million barrels, followed by Japan with 15 million barrels and Korea with 7.23 million barrels.

Over the next six months, around 240 million barrels of emergency oil stocks, the equivalent of well over 1 million barrels per day, will be released on the global market.

“The unprecedented decision to launch two emergency oil stock releases just a month apart, and on a scale larger than anything before in the IEA’s history, reflects the determination of member countries to protect the global economy from the social and economic impacts of an oil shock following Russia’s aggression against Ukraine,” said IEA Executive Director Fatih Birol.

“This latest collective action once again demonstrates the unity of IEA member countries in their solidarity with Ukraine and their determination to provide stability to the oil market during this challenging time,” he added.

Emergency oil stocks in IEA member countries are either in public stocks held by governments or specialized agencies, or stocks held by industry under state obligation.

In the case of public stocks, these could be released via tenders or loans to the market, which will be launched and released over the coming weeks and months, depending on the specific stockholding system and market needs in each country, the agency explained.

In the case of obligated industry stocks, obligations will be lowered, via legislative decrees or administrative mandates, to make the volumes available for consumption, it said.