The International Energy Agency said oil from a record stockpile release will be made available in Asia immediately as buyers in the region clamor to replace barrels lost to war-related disruptions in the Middle East.
The agency released a statement after it said it received implementation plans from member states. Barrels for Europe and the Americas will only be made available from the end of March.
The IEA last week said that the oil market is seeing the biggest supply disruption in history as a result of the war in the Middle East, which has effectively blocked the vital Strait of Hormuz waterway. Oil futures closed above $100 a barrel on Friday and traders are bracing for a tumultuous upcoming week after the US attacked military sites near Iran's main oil exporting facility over the weekend.
Buyers in Asia are most reliant on flows from the Middle East, so the speed of reserve releases is particularly key for the region.
“This brings unprecedented additional volumes of oil to the market from 16 March onward,” IEA Executive Director Fatih Birol said in a post on X. “However, opening the Strait of Hormuz is vital for a return to stable flows.”
ALSO READ: Middle East Conflict, Crude Oil Prices, US Fed Meet And More — The Week Ahead
On a global level, about 72% of the current committed volumes are crude oil. The volumes committed so far are as follows:
| Region | Government Stock | Industry Stocks | Other | Crude | Refined Products |
|---|---|---|---|---|---|
| Americas | 172.2 | 23.6 | 100% | ||
| Asia/Oceania | 66.8 | 41.8 | 60% | 40% | |
| Europe | 32.7 | 74.8 | 32% | 68% | |
| Total | 271.7 | 116.6 | 23.6 | 72% | 28% |
ALSO READ: Oil Market Set For Tumultuous Week As Kharg Attack Raises Stakes
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