【Iran Crisis】IEA member countries agree to release 400 million barrels of emergency oil reserves. Japanese Prime Minister Sanae Takaichi: The earliest release of 80 million barrels of reserves will be on 3.16.

The International Energy Agency (IEA) issued a statement stating that its 32 member countries unanimously agreed on Wednesday (the 11th) to release 400 million barrels of oil from emergency reserves, the largest ever, to address the market turmoil caused by the Middle East war. The emergency reserves will be released at appropriate times that suit each member country’s circumstances, and some members will also take additional emergency measures to supplement the release.

Earlier, before the IEA announcement, Japan announced that it would start releasing about 80 million barrels of crude oil from its reserves as early as next Monday (the 16th). Japanese Prime Minister Fumio Kishida stated that oil tankers still cannot pass through the Strait of Hormuz, and Japan’s crude oil imports are expected to decline significantly starting at the end of this month. Japan relies heavily on the Middle East and will be severely affected. Therefore, Japan made a formal decision before the IEA’s international reserve release to start releasing reserves as early as next Monday (the 16th), releasing an amount of oil equivalent to Japan’s 15 days of consumption from private reserves, and releasing an amount equivalent to one month of consumption from national reserves.

Fumio Kishida indicated that given the uncertain outlook of the Middle East situation, Japan will continue to flexibly explore ways to provide support in the future. The government will utilize existing funds previously set aside to prevent fuel price hikes, aiming to keep gasoline prices around 170 yen per liter.

Currently, IEA member countries hold 1.2 billion barrels of public emergency oil reserves, with an additional 600 million barrels of industry reserves held mandatorily by governments. This coordinated release of reserves is the sixth since the IEA’s establishment in 1974. Previously, the IEA took collective action in 1991, 2005, 2011, and twice in 2022.

French President Emmanuel Macron hosted a virtual G7 leaders’ meeting at 10 p.m. Hong Kong time to discuss the Iran crisis and rising energy prices. Earlier, G7 energy ministers issued a statement saying they are prepared to coordinate with the IEA to take “all necessary measures” to respond to the oil price surge caused by the Middle East war. The statement said, “In principle, we support taking proactive measures to address the current situation, including the use of strategic reserves.” Reports indicate that the IEA has proposed releasing about 300 to 400 million barrels of emergency oil reserves to curb soaring oil prices.

The statement also said, “We are working closely with the IEA, monitoring energy market trends, and coordinating within the G7 and with our international partners, IEA member countries, and others.”