Strategic oil reserves sales out of IEA meeting2 Mar 2022 08:15
31 IEA member countries will release 60 million barrels of oil from their emergency reserves in order to prevent Russia's invasion of Ukraine from threatening oil supply security.
To reduce the impact of Russia's invasion of Ukraine on oil supply, member states will release 60 million barrels of oil from strategic oil reserves.
The International Energy Agency (IEA) evaluated the effects of Russia's invasion of Ukraine on oil supply and what can be done at the extraordinary IEA Ministerial Meeting held yesterday with the participation of the energy ministers of 31 member countries. Making a statement after the meeting, the IEA stated that the member countries agreed to release 60 million barrels of oil within the scope of emergency reserves in order to ensure supply security in the global oil markets due to the occupation.
At the meeting, it was stated that Russia's invasion of Ukraine coincided with the weak period of the oil markets, and with the agreement reached, 4% of the total emergency reserves will be offered to the market. This means 2 million barrels of oil supply per day for 30 days. Emergency oil reserves of IEA member countries are at the level of 1.5 billion barrels.
Russia, the world's third largest oil producer and largest oil exporter, exports 5 million barrels of crude oil (12 percent of global trade) per day. 60 percent of this export is made to Europe.
“GLOBAL ENERGY SECURITY UNDER THREAT”
Expressing that it is encouraging to see how quickly societies unite to condemn Russia's actions and respond decisively, IEA President Fatih Birol is pleased with the decision of IEA member countries to provide access to 60 million barrels of oil in the first place to stabilize the markets. stated that. Noting that the situation in the energy markets remains serious and that all attention should be focused here, Birol said, "Global energy security is under threat and it puts the world economy, which is in a fragile recovery period, at risk."
It was also stated that the IEA will announce a 10-point plan on Thursday as part of the need to find new sources of supply to reduce Europe's dependence on Russian gas.
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