IEA announces largest-ever release of 400M barrels from Oil reserves

The International Energy Agency (IEA) announced that its 32 member countries unanimously agreed to make 400 million barrels of Oil from their emergency reserves available to the market, notes Reuters. The proposed move represents the largest coordinated release of strategic Oil reserves in history.

IEA Executive Director Fatih Birol warned that the ongoing conflict in the Middle East is having a major impact on global energy markets, adding that Asia is currently the region most severely affected by disruptions in Gas supply.

According to the agency, the release would take place over a timeframe adapted to the national circumstances of each member country. The IEA also stated it will continue to closely monitor developments in global Oil and Gas markets.

These announcements come after earlier signals from several governments indicating plans to release part of their strategic reserves. Japan said it could begin releasing Oil reserves as early as March 16, while Germany also signaled it would release part of its reserves.

Market reaction

West Texas Intermediate (WTI) US Oil remains stable on Wednesday, hovering around $85.30 at the time of writing. Prices continue to fluctuate within a range between $82 and $88 since the start of the European session, with no clear direction emerging for the day.