IEA to accelerate oil reserve release

The International Energy Agency (IEA) has announced plans to expedite the release of oil reserves, prioritizing diesel supplies in response to record fuel prices and supply disruptions caused by the Iran and Ukraine conflicts. The IEA, which advises industrialized nations, revealed its decision on Wednesday, following a G7 agreement to release 100 million barrels of crude and diesel.

This move comes after former US President Donald Trump threatened to prohibit US diesel exports if they did not increase market supply. The IEA had previously launched a 400-million-barrel release program in March to address shortages and rising prices triggered by the Iran war, though not all volumes have yet reached the market.

IEA Executive Director Fatih Birol stated that member governments support accelerating the announced oil stock releases to complete them as soon as possible, with a particular focus on prioritizing diesel releases given current tightness in diesel markets. However, the exact amount of diesel and crude oil to be released remains unclear, as the IEA did not specify these details.

G7 countries, comprising France, Germany, Italy, the US, UK, Japan, and Canada, are set to evaluate and revise the plans at a board meeting next week. Germany's Economy Ministry confirmed it would work to release reserves under the March plan but did not provide information on new volumes. Overall, approximately 100 million barrels pledged under the March initiative have yet to reach the market.