The International Energy Agency will release more than 20 million barrels of diesel as soon as possible and accelerate the rest of its emergency oil draw,
Total releases are now set to exceed the 400 million barrels pledged in March.
About 330 million barrels have already been released since the Strait of Hormuz crisis triggered the record coordinated stock draw. IEA members still have roughly 100 million barrels left to deliver under the March action, with some countries having released more than their original commitments and others still holding barrels back.
The diesel portion disappointed the market.
IEA members had discussed releasing as much as 50 million barrels of diesel as part of a broader 100-million-barrel package of crude and refined products. European gasoil prices moved higher following Thursday’s announcement, with traders apparently hoping for a bigger immediate injection.
The United States wanted more, too. U.S. officials have pressed other IEA members to make additional emergency barrels available as diesel prices remain near record levels ahead of the November 3 midterm elections.
Spain will release another 4.4 million barrels from strategic reserves in October. It has so far delivered 3.7 million barrels of the 11.5 million barrels it pledged in March.
Diesel remains the weak spot in the global fuel system.
Refinery disruptions in the Middle East and reduced Russian fuel production have trimmed diesel exports, even as Persian Gulf crude shipments have begun to recover.
Governments have already put roughly 330 million emergency barrels into the market, with another 100 million or so still scheduled.
And while more than 20 million barrels of diesel are now being moved up in the timeline, the market was clearly hoping for more.
By Julianne Geiger for Oilprice.com
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