The International Energy Agency (IEA) has released details for how its member countries will release some 182.7 million barrels of crude oil and oil products over the coming months.
The invasion of Ukraine by Russia has caused concern among many IEA members, who are typically oil-consuming countries. Despite announcements by Chevron and ExxonMobil, the makers of the Texaco and Mobil lubricant ranges, that they will increase their domestic US production, it is unlikely to fill the gap caused by sanctioning Russian oil. A large release of strategic will therefore hopefully stem any rapid price rises for crude oil.
The IEA said about the release:
“Member countries began releasing emergency stocks in March, following the initial IEA decision. And based on the 1 April decision, they will be releasing volumes over the period through to October, according to the specific stockholding system and market needs in each country.”
According to the IEA, about three-quarters of the release will come from public reserves, with the remaining quarter coming from relaxing the obligations on national industries to hold stock. As one may expect, the United States will be the biggest contributor in releasing 90.6 million barrels of crude oil, 60 million barrels of which are already accounted for in the 180 million barrels announced by the US earlier in the year. Germany, Japan, Spain, South Korea, the UK, and France will also make sizable contributions. Most of the released stock will be crude oil, but about 27% will be in the form of oil products.