IEA agrees to accelerate release of 100 million barrels of oil reserves as diesel hits record high

Reuters··US·Read original
4▲0 ▼2Impact / 5
Summary · why it matters

The International Energy Agency, or IEA, has reached an agreement to accelerate the release of oil reserves onto the market, prioritising the allocation of diesel under the plan announced in March. The move could put roughly 100 million barrels of oil onto the market, out of the total 400 million barrel reserve release programme the IEA began in March to counter oil shortages and soaring energy prices caused by the war with Iran. IEA Executive Director Fatih Birol said member countries agreed to speed up the release of reserves under the joint action plan, with the goal of getting oil to market as quickly as possible, and supported prioritising the release of as much diesel as possible from emergency stockpiles, given the severe tightness in the diesel market. The statement came after the G7 countries reached an agreement on Friday, October 2, to release a combined 100 million barrels of crude oil and diesel, following President Donald Trump's warning that he could ban US diesel exports if countries did not increase the amount of diesel they put on the market. However, analysts and some governments say that despite the resolution, the actual volumes delivered may fall short of the targets. IEA member countries are scheduled to assess and review the plan at a governing board meeting next week.

Impact on assets 3

Others▼
⛏Brent Crude Oil Futures
BRENT
▼ NegativeSupplyrelevance

Faster IEA reserve release of crude and diesel boosts global oil supply, weighing on Brent crude prices.

⛏Crude Oil WTI Futures
WTI
▼ NegativeSupplyrelevance

IEA accelerating release of ~100 million barrels of reserves adds crude supply to the market, pressuring WTI prices.

⛏Heating Oil Futures
HEATOIL
± MixedSupplyrelevance

IEA prioritising diesel from emergency stockpiles adds near-term heating oil/diesel supply (bearish), but the move responds to severe diesel tightness and record prices (bullish context).