People familiar with the matter informed The Wall Street Journal on Tuesday that the largest release of oil reserves in its history has been recommended by the International Energy Agency to curb the skyrocketing oil prices during the U.S.-Israel war with Iran.
The newspaper reported that the release would surpass the 182 million barrels of oil released by IEA member countries on the market during two releases in 2022 when Russia invaded Ukraine in full force.
The paper stated that the IEA convened an extraordinary meeting of members on Tuesday, in which countries were due to vote on the proposal the following day.
It said that the plan would be embraced if there were no objections, but protests by even one country could delay the effort.
The G7 energy ministers halted short of agreeing on a release of strategic oil reserves on Tuesday, asking the IEA to assess the situation instead.
A G7 source told Reuters that “Although no country currently faces a physical shortage of crude, prices are rising sharply, and leaving the situation unattended is not an option.”
“G7 countries are generally supportive of an IEA coordinated oil stock release,” the source added, speaking on condition of anonymity.
The source indicated that the actual release cannot begin immediately, as its decisions on aspects such as total volume, country allocations, and timing require further discussion.
It stated, “The IEA secretariat is expected to propose scenarios, based on expected market impact, and outreach may extend to non-IEA members like China and India.”
U.S. crude and Brent crude futures slipped after the Wall Street Journal report. The IEA and the White House did not immediately respond to Reuters’ requests for comment.
Benchmark oil prices lost ground on Tuesday, after the previous day’s increment to almost four-year highs, after U.S. President Donald Trump estimated the war in the Middle East could end soon.
