The International Energy Agency (IEA) is prepared to release additional strategic oil reserves if necessary, following its decision last week to unlock 400 million barrels, Executive Director Fatih Birol announced on Monday.
In a video statement, Birol said the combined reserves of governments and industries still amount to over 1.4 billion barrels, enabling further action if required.
He noted that the IEA’s decision to release oil had already eased market tensions, with Brent crude prices significantly lower than they were a week ago.
Despite this temporary relief, Birol emphasised that releasing stockpiles is not a long-term solution to stabilise oil prices.
He urged the reopening of the Strait of Hormuz, a critical passageway through which 20% of global oil consumption typically flows. He reiterated that re-establishing transit through this area is essential to restore stable oil and gas supplies.
Several countries, including India, Colombia, Singapore, Thailand, and Vietnam, have offered their support to the initiative, Birol added.
The IEA’s release of 400 million barrels last week, in response to soaring oil prices stemming from the Middle Eastern conflict, marks the largest intervention in the organisation’s history.
As of Monday 15:00 GMT, Brent crude prices were down 1.2% to $101.88 per barrel, a sharp drop from the near $120 high recorded last week.
