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IEA agrees to release outstanding 100 million barrels of oil
U.S. had told nations it was unhappy with release
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The Strategic Petroleum Reserve storage at the Bryan Mound site in Freeport, Texas. (Brandon Bell/Getty Images via Bloomberg News)
Key Takeaways:
- International Energy Agency members agreed Oct. 15 to complete the release of 100 million barrels of oil still outstanding from a March intervention.
- Members have tapped 330 million of 400 million barrels initially pledged as conflicts in the Middle East and Russia squeeze fuel supplies.
- Countries will accelerate remaining releases, including 20 million barrels of diesel as soon as possible, while the U.S. sought an additional release.
The International Energy Agency said that members agreed to complete the release of 100 million barrels of oil that are still outstanding from an intervention in March aimed at calming global markets.
The countries will accelerate the distribution of the remaining volumes, including the release of 20 million barrels of diesel “as soon as possible,” the agency said after a meeting of its governing board in Paris on Oct. 15. They have so far tapped 330 million barrels out of 400 million initially pledged in March.
The US had informally lobbied for an additional release to help quell rising diesel prices, Bloomberg reported earlier.
Back in March, the IEA organized the release of 400 million barrels of oil and fuel but some governments kept hold of their buffers, arguing they weren’t needed. Earlier this month, Group of Seven nations agreed to release up to 100 million barrels — a volume that EU officials subsequently said only represented the unreleased portion of what was agreed back in March. The U.S. wants more than that.
The Oct. 15 meeting comes as conflicts in the Middle East and Russia squeeze supplies of the industrial workhorse fuel and send pump prices to record levels, spurring President Donald Trump to contemplate banning U.S. exports of diesel and even announce a supply deal with Russian leader Vladimir Putin.
