₦airaland Forum

The International Energy Agency said on Wednesday its member countries would unlock 400 million barrels of oil from their reserves to ease the impact of the Middle East war, the biggest such release ever.

The coordinated release was the sixth in the history of the organisation, which was created to coordinate responses to major supply disruptions after the 1973 oil crisis.

“IEA countries have unanimously decided to launch the largest-ever release of emergency oil stocks in our agency’s history. IEA countries will be making 400 million barrels of oil available,” IEA Executive Director Fatih Birol told reporters.

“This is a major action aiming to alleviate the immediate impacts of the disruption in markets,” he added.

“But to be clear, the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz.”

The IEA-coordinated release exceeded the 182 million barrels of oil that member countries of the Paris-based global energy body released in 2022 when Russian leader Vladimir Putin invaded Ukraine.

The 32-member IEA said that the emergency stocks will be made available “over a timeframe that is appropriate to the national circumstances of each member country and will be supplemented by additional emergency measures by some countries”.

The crude market has been hit by wild volatility since the United States and Israel began striking Iran at the end of last month, with Tehran retaliating by attacking targets across the oil-rich Gulf and effectively shutting down the Strait of Hormuz.

The Strait normally carries about 20 per cent of the world’s oil and gas supplies.

– G7 coordination with Gulf countries –

The IEA announcement came as leaders of the Group of Seven advanced economies discussed the economic fallout from the US-Israeli war with Iran, now into its second week, at a video conference meeting chaired by French President Emmanuel Macron.

Macron, whose country holds the rotating presidency of the G7 advanced economies, urged US President Donald Trump and other G7 leaders to coordinate to open the strait “as soon as possible.”

At the same time, he said that the strait being choked “in no way” justify lifting the sanctions imposed on Russia over the invasion of Ukraine.

“The consensus was that we should not change our position on Russia and should maintain our efforts on Ukraine,” said Macron.

Macron said the G7 would coordinate moves with Gulf countries “in coming days”.

Macron has said France and its allies are preparing a “defensive” mission to reopen the strategically vital strait.

Earlier Wednesday, Japan — whose strategic oil reserves are among the world’s largest — and Germany said they would tap into their oil reserves.

Prime Minister Sanae Takaichi said Japan would release reserves as early as Monday, while Germany’s Economy and Energy Minister Katherina Reiche said her country planned to do the same, without specifying a date.

Reiche said a total of 2.4 million tons would be released.

US Interior Secretary Doug Burgum said the transit problem was “temporary.”

“What we have here is not a shortage of energy in the world. We’ve got a transit problem,” he said.

– ‘Pumping less oil’ –

Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, said 400 million barrels would still be a “meagre” amount compared with the roughly 45 million barrels that IEA countries consume every day.

“It would therefore be a temporary fix,” she said.

“The Middle East is now pumping less oil — around six per cent less — in reaction to the Iran war.”

Countries around the world have been left scrambling in response to the oil price spikes.

Bangladesh has deployed the army to guard oil depots, India has imposed tighter controls over natural and cooking gas, and French officials conducted inspections at petrol stations and fined those found to be inflating prices.

Greece will cap profit margins on gasoline and a range of foodstuffs for three months, the prime minister said.

IEA country members hold over 1.2 billion barrels of public emergency oil stocks, with a further 600 million barrels of industry stocks held under government mandates.

FreeStuffsNG:
Nice attempt to ease the burden of scarcity they caused by their hypocrisy in not condemning Trump's war on Iran, martyring the Head of State of a sovereign state not at war with the US and the most despicable killing of 168 innocent Iranian primary school girls.

The oil market outrightly rejected their news of the release. It does not address the availability of refined petroleum products like jet fuel, diesel etc.

Machines are not powered by crude oil. It is the refined products of crude oil that does. Besides, Trump said he ordered the release of 120 million barrels of crude oil that will take 120 days. In reality, only 1 million barrels is actually released daily. That does not fill the gap for over 5m barrels of crude oil , millions of litres of petrol, jet fuel, diesel, naphtha etc and fertilizer that can no longer reach the market.

Right now, aside fromTrump eating the humble pie and go cap in hand to Iran, there is no way out. Iran has the upper hand.

US, its proxy in Occupied Palestine and conspiratorial gulf nations that gave their land to Trump to launch attacks on Iran will pay back to the last cent the money Iran will use to rebuild every structure destroyed and compensate bereaved Iranian family.

Justice for 168 innocent Iranian school girls murdered with US Tomahawk missiles.

The campaign has started in Europe https://youtube.com/shorts/qzpxoI_PPY0?si=ItlCKiImexsgnlTO

Sonnobax15:

So far make e reach us for Nigeria,cuz the suffering is just too much.

High price of fuel+ no light at all = chronic anger . As in,I just dey para since

BlackViper:
https://punchng.com/iea-members-to-release-400-million-barrels-from-oil-reserves/

Mynd44:
20-21 million barrels passes through the straight of Hormuz daily. This 400 million barrels can only last 20 days which shows it is a quick fix and not a solution.
If this war drags on which is what Iran wants, the global economy is in trouble

Satazaa:
400 million barrels might mitigate the impact on soaring prices but it's very little in the mid to long term, China and India alone can clear that off in few months, then back to status quo of run away prices if the war is not amicably resolved, infact Trump is the most impacted about the outcomes of his stupid attack on Iran because his Republican party is going to be beaten and humiliated in the midterm elections in November the way Chelsea was humiliated by PSG yesterday,,😜👊👊👊👊

Mynd44:
20-21 million barrels passes through the straight of Hormuz daily. This 400 million barrels can only last 20 days which shows it is a quick fix and not a solution.
If this war drags on which is what Iran wants, the global economy is in trouble

FreeStuffsNG:
Nice attempt to ease the burden of scarcity they caused by their hypocrisy in not condemning Trump's war on Iran, martyring the Head of State of a sovereign state not at war with the US and the most despicable killing of 168 innocent Iranian primary school girls.

The oil market outrightly rejected their news of the release. It does not address the availability of refined petroleum products like jet fuel, diesel etc.

Machines are not powered by crude oil. It is the refined products of crude oil that do. Besides, Trump said he ordered the release of 120 million barrels of crude oil that will take 120 days. In reality, only 1 million barrels is actually released daily. That does not fill the gap for over 5m barrels of crude oil , millions of litres of petrol, jet fuel, diesel, naphtha, LNG etc and tonnes of fertilizer that can no longer reach the market.

Right now, aside fromTrump eating the humble pie and go cap in hand to Iran, there is no way out. Iran has the upper hand.

US, its proxy in Occupied Palestine and conspiratorial gulf nations that gave their land to Trump to launch attacks on Iran will pay back to the last cent the money Iran will use to rebuild every structure destroyed and compensate each bereaved Iranian family.

Justice for 168 innocent Iranian school girls murdered with US Tomahawk missiles.

The campaign has started in Europe https://youtube.com/shorts/qzpxoI_PPY0?si=ItlCKiImexsgnlTO

YoungBlackRico:
Which months? The same report said the IEA countries consumes roughly 45 million barrels per day. 400/45=?

givedemwotowoto:
Nigeria produces about 1.6 million barrels of oil daily. It costs them little to nothing. The oil companies pay for the expenses of drilling, and take about 40% of the oil as compensation according to the agreement. Either party can do whatever they want with their share of the oil.

It’s like an empty plot of land you inherited. A farmer comes along and agrees with you to farm on the land with his own tools and workers, and you both share the proceeds of the harvest 60 : 40.

Nigeria’s share of the oil is about 900,000+ barrels daily. Nigerians consume only about 300,000 barrels daily.

If Nigeria chooses to sell 300,000 barrels of crude to local refineries at the $50 budget benchmark, local refineries can sell petrol to Nigerians at the regular price. The Iranian war will not affect Nigerians.

Nigeria still has 600,000+ barrels of crude to export or sell at the prevailing international price.

I am putting this information out there so that you can ask your politicians the right questions. Don’t wait for Mehdi Hasan to ask the questions for you. Do the research yourself and ask the tough questions. That’s the only way politicians will stop playing with you.

Satazaa:
400 million barrels might mitigate the impact on soaring prices but it's very little in the mid to long term, China and India alone can clear that off in few months, then back to status quo of run away prices if the war is not amicably resolved, infact Trump is the most impacted about the outcomes of his stupid attack on Iran because his Republican party is going to be beaten and humiliated in the midterm elections in November the way Chelsea was humiliated by PSG yesterday,,😜👊👊👊👊

Galaticos444:
Why is no one carrying d breaking news that d new supreme leader has none bn seen in public cos he's seriously injured from an earlier attack?

Mynd44:
20-21 million barrels passes through the straight of Hormuz daily. This 400 million barrels can only last 20 days which shows it is a quick fix and not a solution.
If this war drags on which is what Iran wants, the global economy is in trouble

Galaticos444:
Why is no one carrying d breaking news that d new supreme leader has none bn seen in public cos he's seriously injured from an earlier attack?