IEA chief says over 80% of emergency oil stocks already released

International Energy Agency Executive Director Fatih Birol told G7 leaders on Friday that more than 80% of the emergency oil stocks pledged by member states in March have already been released to stabilize markets strained by the Strait of Hormuz blockade and ongoing supply disruptions.

Release progress

Birol stated that approximately 325 million barrels of the 400 million barrels pledged during the March 11 collective action have already entered the market. "Around 325 million barrels of the IEA collective action announced on 11 March have so far been released," he told the leaders, according to an agency statement. This drawdown represents the largest coordinated release in the organization's history, originally designed to offset war-related supply disruptions in the Middle East.

Market pressures

Energy markets continue to face significant pressure from the ongoing Strait of Hormuz crisis, particularly affecting diesel supplies, Birol noted. Ukrainian attacks on Russian refineries have added further strain to diesel markets, tightening supplies and pushing prices upward, according to the agency statement. The twin disruptions have compounded volatility in global oil markets since the war began in late February.

G7 coordination

G7 leaders agreed Friday to release an additional 100 million barrels of oil and fuel from emergency reserves through the IEA over a four-month period. A substantial share of diesel is expected to be released during the first 20 days of the action, according to a statement issued after the virtual meeting. The group also committed to coordinating refinery maintenance and refrained from imposing energy export restrictions among member countries, while asking the IEA to monitor implementation and report on impacts within 20 days.