The International Energy Agency (IEA) has announced plans to release 400 million barrels of oil to ease the global supply shortage.
IEA’s Executive Director, Fatih Birol, announced this on Wednesday during a broadcast monitored by Nairametrics.
The IEA chief said this followed a unanimous agreement by member countries after disruptions caused by the United States-Israeli war against Iran.
Birol said the IEA would be launching what he called the largest oil release in the agency’s 50-year history.
“Dear colleagues, as a result of the discussions among IEA members, I can now announce that IEA countries have unanimously decided to launch the largest ever release of emergency oil stocks in our agency’s history.
“IEA countries will be making 400 million barrels of oil available to the market to offset the supply lost due to the effective closure of the strait.
“This action aims to alleviate the immediate impact of disruption in markets,” he announced.
The IEA director, however, said while this would alleviate the current situation, the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz.
“Dear colleagues, in this context, the IEA will continue to monitor the market and make further recommendations to IEA members,” he added.
