Global energy body discusses releasing strategic oil reserves

PARIS: Member states of the International Energy Agency (IEA) were set to meet on Tuesday (Mar 10) for crisis talks to assess security of supply and the potential release of emergency stocks as the Middle East war roils markets, the body’s chief said.

In a statement following a Paris meeting of G7 energy ministers on the economic fallout of the conflict, IEA executive director Fatih Birol said he was “in close contact” with energy ministers from key energy producers and consumers regarding the situation.

“In oil markets, conditions have deteriorated in recent days. In addition to the challenges of transit through the Strait of Hormuz, a substantial amount of oil production has been curtailed. This is creating significant and growing risks for the market,” he said.

“I have convened an extraordinary meeting of IEA member governments, which will take place later today to assess the current security of supply and market conditions to inform a subsequent decision on whether to make emergency stocks of IEA countries available to the market,” Birol added.

He said the G7 meeting addressed “all the available options, including making IEA emergency oil stocks available to the market”.

Crude prices have seen sharp fluctuations due to supply disruptions, jumping 30 per cent on Monday to nearly US$120 per barrel before retreating later that day.

But risks remain, with Iran vowing on Tuesday that not one litre of oil would be exported from the Gulf while the United States and Israel press ahead with their bombardment of the country.

IEA member countries currently hold over 1.2 billion barrels of public emergency oil stocks, with a further 600 million barrels of industry stocks held under government mandates.