Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and gas sector. Her…
The International Energy Agency will release more than 20 million barrels of diesel as soon as possible and accelerate the rest of its emergency oil draw,
Total releases are now set to exceed the 400 million barrels pledged in March.
About 330 million barrels have already been released since the Strait of Hormuz crisis triggered the record coordinated stock draw. IEA members still have roughly 100 million barrels left to deliver under the March action, with some countries having released more than their original commitments and others still holding barrels back.
IEA members had discussed releasing as much as 50 million barrels of diesel as part of a broader 100-million-barrel package of crude and refined products. European gasoil prices moved higher following Thursday’s announcement, with traders apparently hoping for a bigger immediate injection.
The United States wanted more, too. U.S. officials have pressed other IEA members to make additional emergency barrels available as diesel prices remain near record levels ahead of the November 3 midterm elections.
Spain will release another 4.4 million barrels from strategic reserves in October. It has so far delivered 3.7 million barrels of the 11.5 million barrels it pledged in March.
Diesel remains the weak spot in the global fuel system.
Refinery disruptions in the Middle East and reduced Russian fuel production have trimmed diesel exports, even as Persian Gulf crude shipments have begun to recover.
Governments have already put roughly 330 million emergency barrels into the market, with another 100 million or so still scheduled.
And while more than 20 million barrels of diesel are now being moved up in the timeline, the market was clearly hoping for more.
Pakistan Faces Winter Gas Shortages if Hormuz LNG Remains Choked
Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and gas sector. Her…
Saudi Arabia Cuts Europe Off From October Crude as Gulf Exports Surge
Strait of Hormuz Shipping Traffic Falls Further as Saudi Oil Flows Rise
Macron Calls for Another Emergency Oil Release as Europe Loses Supply
U.S. Strategic Petroleum Reserve Falls to Lowest Level Since 1982
Oil Prices Fall as Reports Say Hormuz Crude Flows Top Pre-War Levels
Energy Giants Are Betting Billions on a World of Longer Oil Routes
Oil Above $100 Pushes U.S. Fuel Prices to New Records
Export Constraints Curb Kazakhstan’s Ability to Offset the Global Oil Shortage
The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
Merchant of Record: A Media Solutions trading as Oilprice.com