The International Energy Agency (IEA) announced that oil from its emergency reserves will soon begin entering global markets after member countries pledged to release a total of 411.9 million barrels. The announcement was made in a statement published on Sunday.
The decision comes as oil markets remain highly volatile due to the ongoing conflict in the Middle East, which has disrupted tanker traffic through the Strait of Hormuz. This strategic waterway typically handles about 20% of global oil supply, making it one of the most critical energy shipping routes in the world.
According to the IEA, governments have committed to releasing 271.7 million barrels from state-controlled strategic reserves. In addition, 116.6 million barrels will come from mandatory industry stockpiles, while another 23.6 million barrels will be supplied from other reserve sources.
The agency also noted that the majority of the release will consist of crude oil. Approximately 72% of the total supply will be crude, while the remaining 28% will include refined petroleum products.
In terms of timing, oil stocks held by countries in the Asia-Oceania region will be released immediately. Meanwhile, reserves located in Europe and the Americas are expected to become available later in March.
The IEA has previously used its strategic oil reserves to stabilize global markets during major crises. For example, member countries released around 182 million barrels in 2022 following Russia’s invasion of Ukraine, which had caused a sharp surge in oil prices.
