IEA to accelerate oil reserve release

The International Energy Agency has agreed to hasten the drawdown of oil reserves and give diesel supplies priority under the programme it launched in March, Business Recorder reported. The move responds to record-high fuel costs and supply problems tied to the Iran war. Conflicts in Iran and Ukraine have hit refineries and interrupted tanker movements, pushing diesel to record levels in many markets.

According to the agency, finishing previously announced releases quickly could put roughly 100 million barrels on the market. Analysts and some governments, however, argued that the 100 million barrels figure does not necessarily mean a new release of that size. JPMorgan analysts had said beforehand that the Friday announcement mainly sped up volumes earlier committed under the March scheme, and Germany's Economy Ministry indicated it would join only the release already set out in that plan.

The Group of Seven pledged on Friday to free up 100 million barrels, spanning crude oil and diesel, as Donald Trump threatened to halt American diesel shipments abroad unless more fuel reached buyers. No split between diesel and crude volumes was provided by the agency. Member governments still hold roughly 1.1 billion barrels in publicly held emergency stocks, among them more than 200 million barrels of diesel. Members will discuss the plans in a board session scheduled for next week.