International Energy Agency says governments are ready to release 271.7 million barrels of oil reserves

Investing.com — The International Energy Agency announced that governments have committed to releasing 271.7 million barrels of oil from strategic reserves to ease pressure on the global crude oil market, which had previously surged due to supply disruptions caused by the Iran conflict.

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Due to disruptions in tanker transportation through the Strait of Hormuz caused by the Middle East conflict, oil prices have been highly volatile. The Strait is a critical shipping route, typically carrying about 20% of the world’s oil supply.

The release of strategic reserves aims to stabilize market fluctuations during major supply shocks by injecting additional oil into the market until normal supply resumes. As oil prices approached $100 per barrel during the conflict, governments made the latest commitments, with traders closely monitoring supply risks in the Gulf region.

Earlier this month, the agency announced its largest-ever release of oil reserves, with governments agreeing to release approximately 400 million barrels from emergency stocks to help stabilize markets shaken by war-related supply disruptions.

The International Energy Agency has also used strategic reserves in past crises. In 2022, after Russia’s invasion of Ukraine caused a sharp rise in oil prices, member countries released about 182 million barrels of oil.

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