The International Energy Agency (IEA) has announced plans to hasten the release of emergency oil reserves to alleviate global supply tightness.
What happened
The IEA's decision comes amid ongoing conflicts in Iran and Ukraine-Russia, which have restricted oil supplies and driven up prices. To date, IEA member states have released around 330 million barrels of oil out of a pledged 400 million barrels. The United States has accounted for over 40% of the total released so far.
In addition to the oil release, the IEA will also accelerate the release of 20 million barrels of diesel, as Russia has restricted supply due to attacks on its refineries by Ukraine. The average US price for diesel currently sits at over $6 per gallon, prompting the IEA to urge countries with the ability to produce diesel to increase their supplies.
Recent attacks on commercial shipping in the Strait of Hormuz have further exacerbated supply concerns, with Iran launching attacks on ships in the waterway. The US has responded by removing sanctions on Russia, which has agreed to begin shipping diesel to the global market.
