IEA proposes largest-ever oil stockpile release: Report

The IEA move is aimed at countering the price impact of widespread disruption in the Persian Gulf, including the near-total closure of the Strait of Hormuz, which connects oil producers in the region to the wider world.

The International Energy Agency has proposed the largest ever release of oil reserves, according to the Wall Street Journal, as governments seek to contain a spike in energy prices due to the widening conflict in the Middle East.

The proposed release, circulated during an emergency meeting of energy officials on Tuesday, would exceed the 182 million barrels that member countries released in two tranches in 2022, after Russia invaded Ukraine, the newspaper reported, citing officials familiar with the matter. It would be the single largest release to date.

Global benchmark Brent gave up an earlier gain of as much as 3.7% following the report, dropping more than 1% before fluctuating at around $88 a barrel.

The proposal could be delayed if a single country objects, however. Countries are expected to decide on the proposal on Wednesday, the Journal said.

IEA officials in Paris did not immediately respond to a request for comment outside working hours.

The IEA move is aimed at countering the price impact of widespread disruption in the Persian Gulf, including the near-total closure of the Strait of Hormuz, which connects oil producers in the region to the wider world.

About 6% of global oil output has been hit by limited traffic through Hormuz, sending prices of everything from jet fuel and cooking gas soaring across the world. Millions of barrels of oil remains stuck on tankers that can’t cross the narrow strait, where ships have been attacked. The jamming of signals has made it even tougher and unsafe for vessels in the area.