IEA mulls more oil release from reserve
Premium- The agency said its members countries have agreed to work together and share experience and mutually agreed data with the IEA from their nationally self-determined critical mineral stockpiling programs
NEW DELHI : The International Energy Agency (IEA) is discussing further release of oil from the emergency reserves of its member countries as severe supply concerns loom amid the Russia-Ukraine conflict and the eventual sanctions on Russia.
Referring to the emergency reserves, in a media interaction post the ministerial meeting of IEA on Thursday, US energy secretary Jennifer Granholm said: "With respect to the emergency stockpiles, these are ongoing discussions and all those tools are certainly on the table."
Earlier this month, the 31 member-countries of the governing board of the IEA agreed to release 61.7 million barrels of oil from their emergency reserves.
In a communique, the agency said its members countries have agreed to work together and share experience and mutually agreed data with the IEA from their nationally self-determined critical mineral stockpiling programs.
IEA said: "We view this ministerial as the launch of a new phase of the Agency to address today’s energy and energy-related needs in a climate-constrained world. With the mandates adopted today, the IEA will evolve in its mission and impact. In addition to ensuring global energy security, the IEA has a new guiding principle: supporting countries in the global effort to attain net zero greenhouse gas emissions in the energy sector by mid-century."
It noted that recent volatility in markets has placed a burden on consumers at a critical moment of economic recovery. However, IEA resolved to accelerate clean energy transitions as a lasting solution to prevent energy price spikes, such as the recent ones, and to ensure sufficient affordable energy supply, including through securing sufficient investment in energy, universal energy access, uninterrupted flow of energy resources, and consumer protection, especially for the most vulnerable populations.
India is among the eight association countries of IEA, along with China, Brazil and South Africa.
IEA members hold emergency stockpiles of 1.5 billion barrels. The coordinated drawdown announced earlier this month was the fourth in the history of the IEA, which was created in 1974. Previous collective actions were taken in 2011, 2005 and 1991.
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Russia plays a major in the global energy markets as it is the world’s third largest oil producer and the largest exporter. Its exports of about 5 million barrels a day of crude represent roughly 12% of global trade. Around 60% of Russia’s oil exports go to Europe and another 20% to China.
The US has banned import of Russian oil while the UK has announced to phase out oil supplies from the country by the end of this year. Prospects of a ban by the European Union have fueled further supply concerns in the global oil market.
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