The International Energy Agency (IEA) has recommended a release of 400 million barrels of oil from stockpiles, the largest such move in IEA history, Executive Director Fatih Birol said on Wednesday.
The 32 IEA member countries unanimously agreed to make available 400 million barrels of oil from their emergency reserves to the market, Birol said at a press conference.
The release would take place over a timeframe appropriate to the national circumstances of each member country, he added.
Birol said the IEA secretariat will provide further details of how this collective action will be implemented in due course, and the agency will continue to closely monitor global oil and gas markets.
IEA members hold emergency stockpiles of over 1.2 billion barrels, with a further 600 million barrels of industry stocks held under government obligation.
The conflict in the Middle East has impeded oil flows through the Strait of Hormuz, with export volumes of crude and refined products falling to less than 10 percent of pre-conflict levels, according to the IEA.
The move to release emergency oil reserves came ahead of an online meeting of the Group of Seven (G7) leaders, scheduled later in the day, to discuss the economic consequences of the conflict between the United States, Israel and Iran.
The G7 energy ministers, under the French presidency, met via videoconference on Tuesday against a backdrop of heightened volatility in oil prices. On Monday, the price for Brent crude, the international benchmark, briefly climbed to around 119 U.S. dollars per barrel, its highest level since mid-2022.
In a statement released earlier on Wednesday, the ministers said that in principle they support the implementation of proactive measures to address the situation, including the use of strategic reserves.
IEA members agree to release emergency oil reserves amid Mideast turmoil
The United Arab Emirates (UAE) has withdrawn from the Organization of the Petroleum Exporting Countries (OPEC) to secure its greater crude oil pricing autonomy and show its dissatisfaction with neighboring Arab states over their failure to condemn Iran's attacks on it, a Chinese expert on the Middle East said.
On Tuesday, the UAE announced it would withdraw from OPEC and the broader OPEC+ alliance, effective May 1. The move removes the bloc's third-largest oil producer and further weakens its influence over global oil supplies and prices.
In an interview with China Central Television (CCTV), Wang Jin, director of the Center for Strategic Studies at Northwest University in China, noted that disagreements over global energy pricing between the UAE and other OPEC members prompted the exit, as the country seeks greater autonomy over its crude oil exports.
"There are divergent views between the UAE and members of the OPEC or the broader OPEC+ alliance regarding international energy pricing. According to Saudi Arabian assessments, a price range of 80 to 90 U.S. dollars per barrel aligns with their national interests. However, the UAE tends to believe that a price of around 50 U.S. dollars per barrel is sufficient to meet its essential economic needs. Consequently, the UAE seeks to exit these mechanisms to gain more leverage over pricing and bolster its autonomy in global oil exports," Wang said.
Beyond economic disputes, Wang noted that the decision also stems from the UAE's dissatisfaction with regional neighbors, who failed to provide sufficient support to the UAE -- the most targeted Gulf nation by Iranian strikes -- during the recent tensions in the Middle East.
"The UAE harbors deep dissatisfaction with current regional policies. After the United States and Israel launched military strikes against Iran, the UAE has, in fact, been the most targeted Gulf nation by Iranian attacks. From the UAE's perspective, neighboring Arab states including Saudi Arabia and Qatar, have failed to offer sufficient support for it or issue more vocal condemnations of Iran's actions. This lack of support has fueled the UAE's significant resentment. Furthermore, as Iran itself is a member of both OPEC and OPEC+ alliance, the UAE is inclined to use its withdrawal from these mechanisms to demonstrate dissatisfaction over the regional status quo," he said.
UAE quits OPEC for pricing autonomy amid regional tensions: Chinese expert
