International Energy Agency calls for release of more diesel reserves to curb supply disruptions

The director of the International Energy Agency (IEA) has called on member countries to assess their needs to determine whether additional strategic diesel reserves should be released. In an email to members published yesterday, ahead of the meeting on October 15 at the agency’s headquarters, Fatih Birol stated that the current situation demands “immediate attention” and that “cooperation among member countries may be the best way to contain it.”

A summary of the message stated that “all members, including those who have fulfilled their commitments regarding the release of oil barrels, are invited to assess the need for further diesel releases, and if deemed necessary, to specify the quantities, timelines, and nature of such releases.” Countries that have not yet fulfilled all their commitments made last March “should consider accelerating the pace of remaining actions, prioritizing diesel.”

In March, the 32 member countries of the IEA pledged to release 400 million barrels of oil into the market to contain supply disruptions caused by the war in the Middle East. By the end of last week, 325 million barrels had been released out of the 400 million pledged.

The agency announced on October 7 that its members were “prepared to release more” of their strategic oil reserves, including diesel. It noted that member countries still maintained high levels of emergency oil stocks, equivalent to approximately 1.1 billion barrels, including more than 200 million barrels of diesel.

At the beginning of October, the Group of Seven announced a “coordinated release with the IEA of 100 million barrels, starting immediately,” in an effort to contain rising fuel prices.