On 11/3, the IEA announced that member countries agreed to release 400 million barrels of oil from emergency reserves. This action aims to address supply disruptions caused by conflict in the Middle East and marks the largest intervention in the organization's history.

The IEA stated that this oil volume would be released to the market within a timeframe suitable for its 32 member countries. "The oil market faces unprecedented challenges. Therefore, I am pleased that IEA member countries have responded with an urgent collective action of record scale," stated IEA Executive Director Fatih Birol.

Birol noted that the oil market is global, so responses to major disruptions must also be global. "Energy security is the core mission of the IEA. I am pleased that member countries are demonstrating strong solidarity by acting together," he added.

Oil storage tanks at an Idemitsu Kosan plant in Ichihara, Japan, 11/2021. *Photo: Reuters*

However, energy analysts had previously warned that even with maximum IEA reserve releases, it would be difficult to compensate for 20 million barrels of oil unable to pass through the Strait of Hormuz daily. Before the conflict, approximately 20% of global oil and gas was transported via this shipping lane.

Oil prices have fluctuated sharply since the conflict erupted on 28/2. Brent crude prices this week neared 120 USD a barrel at one point, then fell below 90 USD in just two sessions.

Also on 11/3, Japanese Prime Minister Takaichi Sanae stated that Japan plans to release oil from its national reserves as early as next week, citing an "exceptionally high reliance" on the Middle East.

Currently, the 32 IEA members hold over 1.2 billion barrels of oil in national emergency reserves, along with approximately 600 million barrels in commercial stocks. In 2022, IEA countries released about 182 million barrels of oil to support energy markets after the Russia-Ukraine conflict began.

Ha Thu (according to Reuters)