IEA members agree 60mn-barrel oil release in response to Ukraine war

IEA members agree 60mn-barrel oil release in response to Ukraine war

The US and other big oil consuming nations have agreed to tap 60mn barrels of oil from their emergency stockpiles to address a surge in prices and concerns over depleted supplies since Russia invaded Ukraine.

The International Energy Agency said on Tuesday that the co-ordinated release, the fourth in its history, would send a “unified and strong message to global oil markets that there will be no shortfall” because of the invasion. The body will consider “possible additional emergency oil stock draws, as needed”, it added.

Russia is the world’s third-largest crude producer and the second-biggest exporter of oil, sending about 5mn barrels a day to global markets.

As US and European countries impose punishing sanctions on Russia’s financial sector, oil traders have grown increasingly concerned about potential disruptions to oil supplies. Benchmark Brent crude oil was trading up 8.2 per cent at more than $106 a barrel on Tuesday.

Officials in the Biden administration have said they want to try to ensure that Russian energy continues to flow to international markets to minimise domestic economic damage from sanctions on Russia. Half of the IEA’s co-ordinated oil release, or 30mn barrels, will come from the US’s strategic petroleum reserve, said Jennifer Granholm, US energy