325 million barrels of oil and oil-derivative products have been released from strategic reserves since March, according to the International Energy Agency (IEA).
IEA’s Collective Action
The IEA said that member countries had so far released 325 million barrels from 400 million barrels promised in March. This represents over 80% of the 400 million barrels originally pledged in the action announced on 11 March.
The IEA’s 32 member countries, comprising all G7 nations including Britain, Canada, Germany, Italy, Japan, and the United States, made the March pledge.
G7’s Additional Release
The update came a day after G7 countries, working in coordination with the IEA, decided to immediately release 100 million barrels of diesel and crude oil to alleviate global energy supply concerns. The G7 did not specify whether this 100 million barrels includes the remaining 75 million barrels from the March IEA commitment or is in addition to it.
The G7 countries agreed to release over the next four months 100 million barrels of oil and oil-derivative products, “including a frontloaded substantial diesel release within the first 20 days”.
Market Context
The release is aimed at easing global energy supply concerns caused by fallout from the US-Iran war. One consequence of the conflict in the Middle East is restricted diesel supplies, where Iran has been limiting ship traffic through the Strait of Hormuz in response to attacks by the US and Israel. Ukrainian strikes on Russian refineries have also affected the market.
The G7 countries also said there would be no ban on diesel exports between them, heading off a threat Washington had brandished, and which US President Donald Trump later said would not be enacted.
Keep reading