International Energy Agency Director: May Further Release Oil Reserves if Necessary

Hot Topics

Selected Stocks Data Center Market Center Capital Flows Simulated Trading

Client

Source: Cailian Press

Cailian Press, March 23 — (Editor: Liu Rui) On Monday, Fatih Birol, Executive Director of the International Energy Agency (IEA), stated that he is in communication with governments around the world and will release additional oil reserves if necessary.

The Situation Is Very Serious

Birol said during a public speech in Australia, “The situation in the Middle East is very severe. This crisis is more serious than the two oil crises of the 1970s combined… The most fundamental solution is to reopen the Strait of Hormuz.”

“Decision-makers around the world have not fully recognized the severity of the problem,” Birol said frankly. “The Iran conflict has reduced global oil supply by 11 million barrels per day, more than the combined total of the previous two oil crises.”

To address the surge in global crude oil prices, earlier this month, the IEA announced the largest-ever release of oil reserves: a plan to release a total of 400 million barrels of oil into the global market. This release accounts for about 20% of its total global stockpiles.

Birol stated that the IEA’s swift action has had a certain “calming” effect on the market. However, with recent ongoing conflicts in the Middle East, international oil prices continue to soar.

As of press time, Brent crude oil rose 1.39% intraday to $107.89 per barrel; WTI crude oil increased 1.04% to $99.25 per barrel.

Potential Further Release of Oil Reserves

Birol said, “We are currently in negotiations with governments around the world, and if necessary, we will release more oil reserves… If needed, we will certainly do so. We will assess the situation, analyze the market, and discuss with member countries.”

There are speculations that the IEA might wait until oil prices reach a certain level before further releasing reserves. However, Birol denied this, stating, “There is no specific oil price level that would trigger additional oil supply releases.”

Birol also emphasized that releasing oil reserves is not a “cure-all” for cooling down oil prices; it can only alleviate economic difficulties. The key to solving the problem remains in quickly reopening the Strait of Hormuz.

He also highlighted that currently, fuel shortages are becoming increasingly severe across Asia, placing the region at the forefront of this oil crisis.

(Cailian Press, Liu Rui)