IEA: Releasing more oil reserves if necessary; reopening the Strait of Hormuz is crucial

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Source: Cailian Press

Cailian Press, March 17 — Last week, the International Energy Agency (IEA) announced the largest-ever release of oil reserves. The agency stated on Monday that further release actions may be taken in the future to curb the rising oil prices.

IEA Director Fatih Birol said that even after the largest government oil release in history, member countries still hold large emergency oil reserves, meaning that “if necessary,” more oil reserves could be released.

As part of the plan to compensate for disruptions in Gulf countries’ oil exports, the IEA plans to release a total of 400 million barrels of oil into the global market. This week, the first batch of about 100 million barrels of emergency reserves will be supplied to Asian buyers. The disruption of Gulf exports has caused global oil prices to surge by 40% this month.

Birol stated, “Although this release is large-scale, we still have substantial remaining reserves. After this round of releases, IEA member countries’ emergency reserves will be reduced by only about 20%.”

However, Birol also warned that while emergency reserves currently provide a buffer, reopening the Strait of Hormuz and restoring Gulf oil and gas to the global market are crucial.

He further said that governments should be prepared for prolonged conflicts and warned that even if the conflict ends, it will take some time for global energy trade to recover.

International oil prices were affected by Birol’s remarks, falling by 3% on Monday. Additionally, some ships passing through the Strait of Hormuz and U.S. President Trump’s call for countries to help escort ships through the Strait (though with limited response) also eased market concerns.

Brent crude futures fell by $2.93, a 2.8% decrease, closing at $100.21 per barrel; U.S. WTI crude fell by $5.21, a 5.3% decrease, closing at $93.50 per barrel.

Analysts from energy consulting firm Ritterbusch and Associates said in a report, “There are reports that some oil tankers are passing through the Strait of Hormuz, and Trump’s call for escorting ships has led to sell-offs in the oil sector.”

Nevertheless, Brent crude continued to close above $100 for the third consecutive trading day. The risk of further disruptions to oil supply remains.

According to CCTV International, on the afternoon of March 16 (U.S. Eastern Time), President Trump stated that “the pipeline on Khark Island in Iran will eventually have issues” — implying that the U.S. military might attack Iran’s key oil export hub on the island.

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Editor: Zhao Siyuan