IEA Proposes Unprecedented Release of Strategic Oil Reserves to Contain Price Surge

Proposal discussed at an emergency meeting in Paris as global energy markets react to the war in the Middle East

Header Image

 

The International Energy Agency (IEA) is proposing an unprecedented release of strategic oil reserves in an effort to curb the sharp rise in energy prices triggered by the war in the Middle East, according to a report by the Wall Street Journal.

The proposal would involve releasing more oil than the 182 million barrels that IEA member states released to global markets in two phases in 2022 following Russia’s invasion of Ukraine.

The financial newspaper cited sources familiar with the discussions.

Emergency meeting in Paris

The idea was raised during an emergency meeting of officials from the 32 member states of the IEA held in Paris on Tuesday.

According to the Wall Street Journal, a decision on the proposal is expected to be taken on Wednesday.

The discussions come as global energy markets remain volatile amid concerns about disruptions to oil supplies linked to the conflict in the Middle East.

G7 leaders to discuss economic impact

Leaders of the Group of Seven (G7) are also expected to hold a video conference on Wednesday to assess the broader economic consequences of the war.

Oil prices briefly rose above 100 dollars per barrel earlier this week as tensions in the region intensified.

 

Sources: AFP, Reuters, Wall Street Journal

Comments Posting Policy

The owners of the website www.politis.com.cy reserve the right to remove reader comments that are defamatory and/or offensive, or comments that could be interpreted as inciting hate/racism or that violate any other legislation. The authors of these comments are personally responsible for their publication. If a reader/commenter whose comment is removed believes that they have evidence proving the accuracy of its content, they can send it to the website address for review. We encourage our readers to report/flag comments that they believe violate the above rules. Comments that contain URLs/links to any site are not published automatically.