IEA Director: Ready to release more oil reserves if needed
The International Energy Agency is prepared to release additional reserves of diesel and crude oil if necessary to lower prices.
Translated by Qiyas from الجريدة — Original source
Fatih Birol, Executive Director of the International Energy Agency (IEA), said on Tuesday that the agency is ready to coordinate further releases of emergency oil reserves by its member countries if necessary, as it urges the drawdown of diesel stocks under existing plans to help curb rising prices.
Supply disruptions from Gulf states and Russia have pushed diesel prices to record levels in many markets, including the United States, where the issue has become a focal point ahead of the midterm congressional elections on November 3.
Last week, the agency decided to accelerate the drawdown of remaining volumes under a standard plan announced in March for releasing emergency reserves, including more than 20 million barrels of diesel, as soon as possible. The IEA coordinates oil releases from strategic reserves among industrialized nations.
Speaking at a conference in London organized by the Financial Times, Birol responded to a question about the possibility of an additional release by saying, “If the need arises... and if our countries see that the time has come to take this action, then we, as the International Energy Agency, are ready to begin.”
He added that the release of 20 million barrels of diesel is a priority, and that the timing depends on each individual country and market conditions, without specifying a timeframe.
In its latest oil market report, the agency stated that tight supply in global diesel markets could persist for a significant portion of next year, leading to higher prices and fueling inflation.
At the conference, Birol said, “Personally, I do not see any reliable pathway indicating that 2027 will be a year of return to normal.”
Brent crude rose above $111 per barrel on Tuesday, reaching its highest level in five months. Standard European diesel futures were trading at $1,482.25 per ton, up nearly 4 percent since the IEA announced it would accelerate the drawdown of the remaining volumes from the March allocation.
Birol said that members have so far drawn down 80 percent of the standard 400 million barrels of crude oil and petroleum products they pledged.
