Substantial emergency crude stocks held in reserve – IEA

Members of the International Energy Agency (IEA) maintain ample emergency oil stockpiles even after announcing the largest coordinated release of strategic reserves in its history.

IMAGE: Oil stored in underground salt caverns to be used in case of war or global crisis. Getty Images

In March, the IEA agreed to release a record 400 million bbls of crude oil from the strategic reserves held by its members, after the US-Iran war effectively shut crude flows through the Strait of Hormuz and sent oil prices soaring.

Of this 400 million bbls of crude oil, about 290 million bbls have been released by member countries so far, the IEA noted, adding that its members still hold more than 1 billion bbls of emergency oil stockpile in reserves.

“IEA countries still hold a substantial volume of emergency stocks in reserve,” the agency’s executive director Fatih Birol said in a statement, providing some reassurance to the turbulent market.

Notably, Brent crude is currently trading above the $90/bbl threshold as the US and Iran continue targeting each other, leaving commercial vessels attempting to transit the Strait of Hormuz in the crossfire.

“Threats to the Bab el-Mandeb Strait, which has become increasingly important as a route to bypass the Strait of Hormuz, exacerbate these concerns further,” the IEA said, as renewed hostilities shattered hopes of a ceasefire.

By Aparupa Mazumder

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