330 million bbls tapped from emergency reserves – IEA

The International Energy Agency (IEA) has collectively released about 330 million bbls of crude oil and petroleum products from strategic reserves so far, amid the ongoing conflict in the Middle East.

IMAGE: Oil processing plant. Getty Images

The release accounts for a bulk of the 400 million-bbl stock draw pledged by IEA's 32-member countries from earlier this year, as the conflict in Iran has paralysed oil flow through the Persian Gulf.

The IEA’s move comes as tanker movements through the Strait of Hormuz, a vital corridor handling about 25% of global seaborne oil trade, has dropped sharply amid rising tensions.

Member countries have “agreed to take all necessary steps to complete the remaining releases of around 100 million barrels in a timely manner,” the IEA said.

Few members have already released higher volumes than initially pledged in March, while others intend to do so – making the total amount of emergency stocks release exceed the original total of 400 million bbls, the Paris-based agency noted.

Spain will release another 4.4 million bbls from its strategic petroleum reserve (SPR) in October, Reuters reported. It has so far delivered 3.7 million bbls of the 11.5 million bbls it pledged in March.

The IEA will also release more than 20 million bbls of diesel as soon as possible, the agency added.

The coordinated emergency stock release is the sixth in the IEA’s history, the agency said earlier.

By Aparupa Mazumder

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