The International Energy Agency (IEA) is holding an informal meeting on Wednesday to discuss the planned release of 100 million barrels of oil and diesel stocks to ease the fuel supply crunch, two EU diplomats told Reuters today.
The IEA’s Governing Board, the highest decision-making body of the international agency, is holding the meeting after representatives of EU nations already discussed specifics of the planned oil stocks release earlier on Wednesday, according to Reuters’ sources.
Details on the 100-million-barrel release are yet to be publicly announced.
Last week, the G7 group of nations announced the release of 100 million barrels of oil stocks over four months, including “a front-loaded substantial diesel release within the first 20 days by G7 members and partners.”
However, no volumes or timelines have been agreed on yet, adding to the market confusion whether these stocks are part of the 400-million-barrel release announced by the IEA in the spring at peak closure of the Strait of Hormuz.
Last week’s announcement came after days of pressure by the Trump Administration on key European countries, especially France and Germany, to release diesel stocks and ease the soaring prices that are hurting the chances of the Republicans in the midterm elections in the United States early next month.
At the meeting on Friday with key leaders of the G7 group, the IEA’s Executive Director, Fatih Birol, said that around 325 million barrels of the IEA collective action announced in March have so far been released, representing over 80% of the 400 million barrels originally pledged in the action.
In their joint statement, G7 Leaders on Friday asked the IEA to take the work forward in the coming days and weeks.
The announced release of 100 million barrels has failed to drive oil prices significantly lower, and Brent crude prices remain above $100 per barrel early on Wednesday, while analysts say the release would only be a temporary solution that would further drain depleted inventories.
By Michael Kern for Oilprice.com
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