IEA oil supply pledge to exceed target as it boosts release of remaining stocks

The International Energy Agency (IEA) has announced that its March commitment to release crude oil stocks will surpass its initial target, with remaining supplies being expedited as global efforts to curb soaring energy prices persist. So far, members have released 330 million barrels, with another 100 million barrels – encompassing over 20 million barrels of diesel – set to be distributed in a manner aligned with national circumstances, as revealed in a statement on Thursday.

This total release surpasses the initial 400 million barrels pledged by the IEA in March, following the onset of the US-Iran and Iran-Israel conflict. IEA representatives disclosed that certain members have surpassed their initial pledges, while others intend to do so.

Following a meeting, the IEA emphasized that specific plans are already in place to release these stocks as swiftly as possible. Global energy prices remain volatile and high due to the ongoing war in Iran, which has persisted for eight months and is straining energy supplies. Earlier this month, G7 leaders committed to hastening the IEA's coordinated emergency stock release by distributing 100 million barrels of diesel and other reserves through the IEA to aid in stabilizing markets.

Additionally, the United States recently lifted sanctions on Russia to enable the nation to supply millions of barrels of diesel to global markets. The Opec + group, for its part, maintained its oil production targets for November, extending the pause initiated in October after six months of incremental increases. Oil prices surged following the IEA's announcement; Brent, the benchmark for two-thirds of the world's oil, increased by 0.15% to $106.20 a barrel, while West Texas Intermediate, which tracks US crude, jumped 3.28% to $98.21 a barrel.

The IEA's statement on Thursday indicated its encouragement of IEA members with oil production and refining capacities to boost the supply of crude and refined products, with a particular focus on diesel. The agency pledged to continue monitoring the progress of its March pledge and will inform G7 leaders and the IEA governing board on any further actions required based on an updated oil market assessment, concentrating on diesel.