More than 400 million
barrels of oil from International Energy Agency emergency
reserves will begin flowing soon, the agency said in its most
detailed account of the rollout of the plan to combat a spike in
crude prices since the start of the Iran war.
Stocks from Asia and Oceania countries will be available
immediately and stocks from Europe and the Americas will be
available at the end of March, the agency said on Sunday, four
days after the agreement was announced.
Governments have committed to make available 271.7 million
barrels of oil from government stocks, 116.6 million barrels
from obligated industry stocks and 23.6 million barrels from
other sources, the statement said.
The bulk of the pledged reserves – 195.8 million barrels –
are from member countries in the Americas, 172.2 million of that
from government stocks, the IEA said.
Asia Oceania member countries have committed to
contribute 108.6 million barrels, 66.8 million of that from
government stocks, and Europe has pledged 107.5 million barrels,
including 32.7 million from government stocks.
The IEA statement said that 72 per cent of planned releases are in
the form of crude oil and 28 per cent are oil products.
Western economies coordinate their strategic oil stockpiles
through the IEA, which was formed in 1974 after the oil crisis.
This is the sixth coordinated stockpile release since the
agency’s creation.
The release is aimed at combating a spike in oil prices
caused by disruptions to around a fifth of global oil and gas
supply along the Strait of Hormuz since the war began February
28, according to the IEA. Iran said on Wednesday the world
should be ready for oil at $200 a barrel as its forces continue
to hit merchant ships on the strait.
IEA members hold emergency stockpiles of more than 1.2
billion barrels, with another 600 million in industry stocks
held under government obligation.