The head of the International Energy Agency (IEA), Fatih Birol, indicated that the oil reserves released in response to the Iran conflict accounted for only about 20% of total stocks, and the agency is prepared to inject more reserves into the market if member countries desire further action.
In March of this year, under IEA coordination, member states including the United States, Germany, and Japan pledged to release a record 400 million barrels of crude oil from their emergency reserves.
"We still retain 80% of our reserves," Birol stated on Thursday during an event hosted by Chatham House in London. "The amount to be released, and whether to release at all, will depend on how the market evolves and on decisions made by member governments."
In a report issued earlier this month, the IEA noted that globally observable oil inventories were declining at a rate of approximately 4 million barrels per day during March and April. As the Middle East conflict has effectively kept the Strait of Hormuz in a state of persistent closure, disruptions to global oil exports are intensifying. Although the coordinated release of oil reserves by the IEA has helped curb the rise in crude futures prices, oil prices remain above $100 per barrel.
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