Members of the International Energy Agency have agreed to release a record volume of oil from emergency reserves as governments try to calm energy markets after supply disruptions linked to the conflict involving Iran.
All 32 member states, including the United States and the United Kingdom, approved the release of about 400 million barrels. Officials said the move aims to ease shortages and limit the sharp rise in global oil prices.
Energy markets reacted strongly after exports through the Strait of Hormuz slowed dramatically during the conflict. The narrow shipping route normally carries roughly a quarter of the world’s seaborne oil supply, making it one of the most critical energy corridors.
Despite the large volume, analysts say the release will only provide temporary relief. The amount equals just a few days of global oil demand and roughly two weeks of the normal supply that typically moves through the Strait of Hormuz.
Member countries of the International Energy Agency maintain emergency stockpiles as a safeguard against major disruptions. Collectively, governments hold more than one billion barrels of strategic reserves, with additional industry stocks kept under government agreements.
Energy experts note that releasing reserves does not immediately flood markets with new oil. Instead, governments allow producers and storage operators to make more supply available for refineries and buyers.
Industry analysts warn that the measure cannot be repeated frequently because the reserves serve as a long-term safety buffer. Once governments release those stocks, they must rebuild them before responding to future supply shocks.
Related Readings:
Source link
#Emergency #Oil #Reserves #Approved #Released #Countries #European #Financial #Review
