IEA confirms individual contributions to collective action to release oil stockpiles in response to Russian invasion of Ukraine – News
IEA member countries unanimously agreed on March 1 to a first emergency response plan to ease growing tensions in oil markets stemming from Russia’s invasion of Ukraine. IEA member countries have agreed to make 60 million barrels of their emergency oil stocks available to the market. Over the past few days following the decision, each IEA member country reflected on what contribution they could make to the announced response plan, given their national circumstances. Commitments submitted by Members have indeed exceeded 60 million barrels, demonstrating great solidarity.
“The decision to release emergency stocks – for only the 4th time in IEA history – sent a strong message that IEA members are united in support of Ukraine and will do all they can to ensure market stability in these difficult days,” said Fatih Birol, Executive Director of the IEA. “Events in Ukraine remain deeply distressing and the impacts on energy markets are increasingly pronounced. We continue to monitor the situation closely and if necessary, we are ready to recommend additional steps to take advantage of this initial release.
IEA member countries hold 1.5 billion barrels of public reserves and about 575 million barrels under obligations to industry. Therefore, this initial response of 61.7 million barrels represents only 3% of the total emergency reserves.
Emergency oil stocks in IEA member countries are either in the form of public stocks (held by the government or by specialized agencies) or in the form of stocks held by industry under a government obligation. In the case of public stocks, these can be released through tenders or market loans, which will be launched and released over the next few weeks depending on the country-specific storage system. In the case of obligated industrial stocks, the obligations will be lowered, via legislative decrees or administrative mandates, to make the volumes available for consumption. It may take a few days.
The following table shows the distribution of oil to be made available by each of the participating countries. More details will be available in due course on the breakdown of pledged crude and product barrels, and industry public and mandatory stocks.