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International Energy Agency members agreed Thursday to accelerate the release of about 100 million barrels of remaining emergency oil stocks, including more than 20 million barrels of diesel to be made available as soon as possible, citing continued tightness in global energy markets.
The decision came after a meeting of the agency’s Governing Board on energy markets and security. The board said its latest assessments pointed to persistent tightness in oil markets, with diesel singled out as the most pressing concern.
About 330 million barrels have so far been released under a collective action the agency launched in March in response to the Strait of Hormuz crisis.
The board said total releases will ultimately surpass the original commitment of 400 million barrels, because some members have already put more on the market than they initially pledged and others intend to follow.
Members agreed to take “all necessary steps” to complete the remaining releases in a timely manner, consistent with their national circumstances. The board said specific acceleration plans are already in place.
The board also encouraged members with oil production and refining capacity to increase supplies of crude oil and refined products, with a particular focus on diesel. It stressed the importance of keeping energy trade flowing freely.
Members said they are prepared to take further action to address global energy market challenges. The statement builds on a G7 statement issued Oct. 2.
The IEA Secretariat will track progress on the releases and report to G7 leaders and the Governing Board on whether further action is needed. It will draw on an updated oil market assessment focused on diesel.
The Paris-based IEA was created in 1974 in response to the oil supply shocks of that era, and coordinating emergency oil stock releases among its members is one of its core functions.
Members are required to hold emergency reserves, which governments can draw on collectively when supply disruptions threaten markets.
The Strait of Hormuz, a narrow waterway at the mouth of the Persian Gulf, is one of the world’s most important chokepoints for oil shipments.
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