BRUSSELS: The International Energy Agency (IEA) has agreed to accelerate the release of emergency oil stocks and prioritise diesel supplies as governments seek to tackle record fuel prices and supply disruptions linked to the Iran war.
The decision follows an IEA programme launched in March to release 400 million barrels of oil stocks in response to shortages and rising prices. The agency said around 100 million barrels committed under the initiative have yet to reach the market.
“Member governments expressed support for accelerating the oil stock releases announced in the Collective Action of March 2026 with a view to completing them as soon as possible,” IEA Executive Director Fatih Birol said in a statement.
IEA members also backed prioritising the release of diesel stocks “to the extent possible” amid tightness in global diesel markets.
The agency did not specify how much of the planned release would comprise diesel or crude oil. Member governments are scheduled to review the implementation plans at a board meeting next week.
The announcement came after G7 countries agreed last Friday to release 100 million barrels of crude and diesel, raising expectations of additional emergency stock releases.
The G7 comprises the United States, United Kingdom, Canada, Japan, France, Germany and Italy.
Wars involving Iran and Ukraine have damaged refineries and disrupted tanker traffic, contributing to record-high diesel prices in several markets and increasing concerns over fuel supplies.
Extent of New Supply Unclear
Analysts have questioned whether the headline figure represents a new 100-million-barrel intervention or simply an acceleration of volumes already committed under the March programme.
JPMorgan analysts said the latest announcement appeared primarily to accelerate deliveries already pledged in March rather than introduce a fresh intervention of that size.
Germany’s Economy Ministry similarly said it would participate in the further release of volumes already determined by the IEA in March, without indicating any additional contribution.
The IEA coordinates emergency oil stockpiles among industrialised countries. Its member governments currently hold publicly controlled emergency oil stocks equivalent to around 1.1 billion barrels, including more than 200 million barrels of diesel.
The agency’s latest move is aimed at bringing the remaining committed volumes to the market more quickly, with particular emphasis on easing pressure in diesel markets.
By Reuters
