The International Energy Agency (IEA) will release more than 20 million barrels of diesel as soon as possible and accelerate the remaining deliveries under its emergency oil stock draw, as supply disruptions continue to tighten global fuel markets.
The move will push total releases beyond the 400 million barrels pledged in March, following the crisis around the Strait of Hormuz.
About 330 million barrels have already been released, while roughly 100 million barrels remain to be delivered under the coordinated action. Some member countries have exceeded their initial commitments, while others have yet to release their full allocations.
However, the immediate diesel release fell short of market expectations. IEA members had discussed releasing as much as 50 million barrels of diesel as part of a broader 100-million-barrel package of crude oil and refined products.
European gasoil prices rose after Thursday’s announcement, suggesting traders had anticipated a larger immediate supply boost.
The United States has also pressed other IEA members to make additional emergency supplies available as diesel prices remain near record levels ahead of the November 3 midterm elections.
Spain plans to release another 4.4 million barrels from its strategic reserves in October. It has delivered 3.7 million barrels of the 11.5 million barrels it pledged in March.
Diesel remains a pressure point in the global fuel market, with refinery disruptions in the Middle East and reduced Russian fuel production curbing exports even as crude shipments through the Persian Gulf begin to recover.
The accelerated releases aim to bring more supply to the market sooner. Still, the scale of the immediate diesel allocation has disappointed traders seeking greater relief from tight refined-product supplies.
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