International Energy Agency Members to Release Emergency Oil Reserves to Stabilize Global Markets

Kathmandu. The International Energy Agency (IEA) has announced that member nations in the Asia and Oceania region will immediately release oil from their emergency stockpiles into the market. This move is stated to be aimed at reducing volatility seen in the global market.

According to a statement issued by the agency on Sunday, oil supply from emergency reserves will begin to reach the global market soon. Member nations have already submitted their implementation plans regarding the public release of this oil. Oil from the reserves of member nations in the US and European regions will be made available starting towards the end of March.

The agency noted that in light of the disruption to global oil supply caused by the ongoing conflict in the Middle East, 32 member nations jointly decided on March 11 to release 40 million barrels of oil.

Of this total volume, 27.17 million barrels will be supplied from government reserves, 11.66 million barrels from mandatory industry stockpiles, and 2.36 million barrels from other sources. Seventy-two percent of the total oil will be crude oil, and 28 percent will be refined petroleum products.

The IEA stated that the ongoing war in the Middle East has created the largest supply disruption in the history of the global oil market. According to the agency, the joint action by member nations is the largest collective emergency initiative to date, which is expected to provide significant support to the global oil supply.

However, the agency also mentioned that the resumption of normal maritime transport through the Strait of Hormuz is the most crucial factor in stabilizing the oil market.