IEA Discusses More Oil Stock Releases: Birol
The International Energy Agency is engaging with governments across Asia and Europe regarding the potential release of additional oil reserves "if needed" because of the conflict in Iran, says Executive Director Fatih Birol.
"Certainly, if needed, we will carry it out. We will examine the conditions, analyze, evaluate the markets, and hold discussions with our member countries," Birol stated at the National Press Club in Canberra.
On March 11, IEA member countries reached an agreement to release a historic 400 million barrels of oil from strategic reserves to tackle the surge in global crude oil prices. The decline accounted for 20% of total stocks.
Birol stated that there wouldn't be a particular crude price point to initiate another release.
A stock release will soothe the markets, but this is not the fix. It will merely assist in alleviating the suffering in the economy.
The IEA leader commenced his global journey in Canberra, emphasizing that the Asia Pacific region is at the center of the oil crisis due to its dependence on oil and essential goods like fertilizer and helium passing through the Strait of Hormuz.
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Following his meeting with Australian Prime Minister Anthony Albanese, Birol will head to Japan later this week prior to a Group of Seven gathering.
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He characterized the crisis in the Middle East as "extremely serious" and worse than the combination of the two oil crises of the 1970s and the effects of the Russia-Ukraine war on gas.
The conflict with Iran had removed 11 million barrels of oil daily from the worldwide supply, exceeding the total of the previous two oil crises.
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He remarked on his choice to start speaking publicly three weeks into the war, stating that the decision makers worldwide did not fully grasp the severity of the issue.