IEA Confirms Considering Stockpile Release After G7 Call

SECAUCUS, NJ (DTN) – The International Energy Agency said Wednesday (3/11) it was considering a release of oil from its stockpiles, affirming the intent of finance ministers from the Group of Seven countries to ease the pressure on global crude supplies caused by the Iran war.

“I have convened an extraordinary meeting of IEA Member governments, which will take place later today to assess the current security of supply and market conditions to inform a subsequent decision on whether to make emergency stocks of IEA countries available to the market,” IEA executive director Fatih Birol said in a statement.

Birol said he held a meeting earlier Wednesday with G7 finance ministers to discuss the prospective release. Media reports had earlier suggested a potential IEA stockpile release of between 300 million and 400 million bbl. The global energy agency has custody of some 1.2 billion bbl of reserves that belong to consuming countries, led by the G7.

Global energy supplies have been disrupted since the start of the Iran war on February 28, after Tehran shuttered the Strait of Hormuz that provides passage to approximately 21 million bpd of petroleum liquids and began firing missiles at its fellow oil producing neighbors in OPEC.