IEA to meet Wednesday over proposed release of oil, diesel stocks

The International Energy Agency (IEA) is set to convene an informal meeting on Wednesday to discuss the potential release of oil and diesel stocks, according to European Union diplomats. The meeting, scheduled for 13:00 local time (11:00 GMT), comes amid escalating oil prices driven by the ongoing conflicts in Iran and Ukraine, which have disrupted exports and damaged refineries.

EU diplomats revealed that representatives from European nations had already deliberated on the proposed release during a morning meeting on Wednesday. The increase in diesel prices has become a significant political and economic issue, as diesel fuel is crucial for trucking, agriculture, and industry worldwide.

In response to the crisis, the Group of 7 (G7) nations agreed last week to release 100 million barrels of crude and diesel. The G7 comprises the United States, United Kingdom, Japan, Canada, along with France, Germany, and Italy. It remains unclear whether the G7 agreement will solely release the remaining portion of an IEA-coordinated 400-million-barrel release committed in March or add additional volumes to the existing plan.

Germany's economy ministry stated that it is working on the approval of the energy reserves release and will participate in issuing the volumes already set by the IEA in March. This move, prompted by the Iran war, represents the largest emergency stock release ever undertaken.