London: The International Energy Agency (IEA) has decided to release 400 million barrels of oil from the strategic reserves of its member countries to address the global energy crisis triggered by disruptions in shipping through the Strait of Hormuz.
The amount is more than double the volume released after Russia’s invasion of Ukraine, officials said.
IEA Executive Director Fatih Birol stated that member countries agreed to release large quantities from their reserves after recognising the seriousness of the situation.
Supply concerns
The disruption in oil exports has also led several West Asian countries to significantly reduce production, adding to concerns in global energy markets.
Currently, IEA member nations collectively hold over 1.2 billion barrels of strategic oil reserves.
In addition, major industrial companies maintain around 600 million barrels of oil as private reserves, according to reports.
The release is expected to stabilise global oil supplies and reduce pressure on energy prices.
