The International Energy Agency (IEA) has said that its March pledge to release crude oil stocks will exceed its target, and will be accelerating the release of the remaining supplies as global efforts to tame soaring energy prices continue.
Members of the Paris-based agency have so far released 330 million barrels of oil, and the remaining 100 million barrels – which includes more than 20 million barrels of diesel – will be released in a “timely manner consistent with national circumstances”, it said in a statement on Thursday.
That would make the total releases exceed the initial 400 million barrels the IEA had pledged in March, at the onset of the war between US and Israel and Iran.
“Some IEA members have released higher volumes than initially pledged in March while other members intend to do so,” the IEA said after a meeting. Specific plans are already in place ... [to release the stocks] as soon as possible.”
Global energy prices remain volatile and elevated as the war in Iran, now in its eighth month, continues to choke energy supplies.
Earlier this month, G7 leaders pledged to accelerate the IEA's co-ordinated emergency stock release by rolling out 100 million barrels of diesel and other reserves through the IEA to help to stabilise markets.
And in a controversial move last week, US President Donald Trump's administration lifted sanctions on Russia to enable the latter to supply millions of barrels of diesel to global markets.
The Opec+ group, meanwhile, kept its oil production targets unchanged for November, extending the pause it started in October after six months of gradual increases.
Oil prices rose after the IEA's announcement. Brent, the benchmark for two-thirds of the world's oil, added 0.15 per cent to $106.20 a barrel at 8.27pm UAE time. West Texas Intermediate, the gauge that tracks US crude, jumped 3.28 per cent to $98.21 a barrel.
Thursday's IEA statement said it has “encouraged those IEA members holding oil production and refining capacities to boost supply of crude and refined products, particularly diesel”.
The IEA said it will continue to monitor the progress of the completion of its March pledge, “and will inform G7 leaders as requested and the IEA governing board on further actions needed, based on an updated oil market assessment, focusing on diesel”, it added.