IEA Considers Largest-Ever Oil Stockpile Release, Report Suggests

International Energy Agency Proposes Largest Ever Oil Reserve Release

The International Energy Agency (IEA) has proposed the largest ever release of oil reserves in response to a spike in energy prices due to the widening conflict in the Middle East. The proposed release, which was circulated during an emergency meeting of energy officials on Tuesday, would exceed the 182 million barrels released by member countries in two tranches in 2022.

The proposed release is aimed at countering the price impact of widespread disruption in the Persian Gulf, including the near-total closure of the Strait of Hormuz, which connects oil producers in the region to the wider world. The disruption has resulted in 6% of global oil output being hit by limited traffic through the strait, causing prices to rise.

The global benchmark Brent gave up an earlier gain of as much as 3.7% following the report, dropping more than 1% before fluctuating at around $88 a barrel. The proposal is expected to be decided on Wednesday, but could be delayed if a single country objects.

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The IEA move is an attempt to alleviate the pressure on energy prices, which have soared across the world due to the disruption. The near-total closure of the Strait of Hormuz has resulted in millions of barrels of oil remaining stuck on tankers that cannot cross the narrow strait.