Over 400 million barrels of oil from the International Energy Agency’s emergency reserves will start reaching markets in the coming period, the institution announced in the most detailed presentation of the plan to combat rising oil prices following the outbreak of the war with Iran, Reuters reports.
Stocks from member states in Asia and Oceania will be available immediately, while oil from Europe and the Americas will start hitting the market at the end of March, according to the statement published on Sunday, four days after the agreement was announced.
Governments have committed to making available 271.7 million barrels from state strategic reserves, 116.6 million barrels from industry mandatory stocks, and an additional 23.6 million barrels from other sources.
Where Do the Oil Reserves Come From
The majority of the promised reserves, 195.8 million barrels, come from agency member states in the Americas, of which 172.2 million barrels come from government stocks.
Member countries in Asia and Oceania will contribute 108.6 million barrels, of which 66.8 million come from government reserves, and European states have pledged 107.5 million barrels, including 32.7 million from public stocks.
The International Energy Agency stated that 72% of the quantity to be released is crude oil, while 28% represents refined petroleum products.
The Sixth Release from IEA's History of Stock Releases
Western economies coordinate their strategic oil reserves through the International Energy Agency, established in 1974 after the global oil crisis. This is the sixth release coordinated by stocks since the institution's establishment.
The measure aims to temper the rise in oil prices caused by the disruption of energy transport through the Strait of Hormuz, a route through which approximately one-fifth of global oil and gas supplies pass.
The war that began on February 28 has affected maritime transport in the area, and Iran has warned that the world must be prepared for oil prices of up to $200 per barrel, as its forces continue to attack commercial vessels in the strait.
Member countries of the International Energy Agency hold strategic reserves of over 1.2 billion barrels of oil, in addition to approximately 600 million barrels held in industrial stocks maintained through government obligations.