Paris, 15 October. Member countries of the International Energy Agency (IEA) agreed at a meeting to speed up the release of the remaining roughly 100 million barrels of oil and oil products from emergency stocks. This is the final part of the 400-million-barrel package the agency agreed in March after the start of the war of the United States and Israel with Iran, not a new release.
Member countries have so far released about 330 million barrels; the remainder, including more than 20 million barrels of diesel, will be put on the market "in a timely manner consistent with national circumstances". Some countries have released more than they pledged in March and others intend to do so, so the total will exceed the original 400 million barrels. The United States accounts for more than 40% of what has been released.
The acceleration was also backed by G7 leaders, who on 2 October pledged to release 100 million barrels of diesel and other stocks through the IEA; this is not new oil but the completion of a release already under way. IEA governments still hold about 1.1 billion barrels of public emergency stocks, including more than 200 million barrels of diesel, and the agency said it is ready to release more if needed.
The IEA also noted that exports from the Middle East have returned to pre-crisis levels and that global oil storage is not tight. At the same time, the global diesel shortage caused by the war in Iran will persist, and inventories are unlikely to recover before the second half of 2027. Oil prices remain high: on Friday they stayed above $105 a barrel.
Background
US Strategic Petroleum Reserve stocks have fallen to about 284 million barrels, the lowest level since 1982 (according to Fortune), and will drop to about 243 million once the release is complete.
