Member states of the International Energy Agency (IEA) convened for crisis talks to address security of supply and the potential release of emergency oil stocks. The discussions come as market conditions have deteriorated significantly due to the Middle East conflict and disruptions to oil production and transit routes.
IEA executive director Fatih Birol stated that the agency is in close contact with energy ministers from key producing and consuming nations. He highlighted that substantial oil production has been curtailed, creating significant risks for the market. An extraordinary meeting of IEA member governments was scheduled to assess current security of supply and market conditions, which would inform a decision on releasing emergency stocks.
Crude oil prices have experienced sharp fluctuations, with a notable jump before retreating. The G7 energy ministers also discussed all available options, including the release of IEA emergency oil stocks. While G7 finance ministers reviewed a possible release of strategic reserves, the situation was deemed not yet critical, but a readiness to react was emphasized.
IEA member countries collectively hold over 1.2 billion barrels of public emergency oil stocks, with an additional 600 million barrels of industry stocks held under government mandates. The IEA, established after the 1973 oil crisis, requires members to maintain emergency oil stocks equivalent to at least 90 days of net oil imports to ensure energy security.