IEA: More oil reserves can still be tapped if necessary

The International Energy Agency (IEA) stated on Monday that it can still draw on more oil reserves if necessary. The agency announced a record release of oil reserves last week to mitigate the impact of the Iran conflict. IEA Executive Director Fatih Birol stated in a television statement that the ongoing emergency release action will only reduce the IEA's reserves by about 20%. "We still have over 1.4 billion barrels in reserves, which means we can take further action if needed in the future." The Middle East conflict has nearly paralyzed shipping in the critical Strait of Hormuz, forcing some of the world's largest oil-producing countries to cut production and driving oil prices up more than 40% in two weeks, exceeding $100 per barrel. The IEA stated last week that this crisis is the largest supply disruption event in the history of the oil market. However, Birol also stated that while releasing reserves can provide a buffer at present, it is not a long-term solution. He emphasized that the most important step is to reopen the Strait of Hormuz. Birol noted that Asian markets are currently receiving more additional crude oil supplies. Asia is the most dependent region on Middle Eastern oil transport, and thus is also the area most severely affected by this supply shortage. Major oil-producing countries like Iraq have already lost a significant portion of their oil revenue due to transportation disruptions. As part of the IEA's coordinated action, Asian countries have committed to releasing over 100 million barrels of oil reserves, Europe will release about 100 million barrels, and the Americas will release over 170 million barrels. Additionally, more than 20 million barrels of oil will be provided through increased production. Birol stated that other countries supporting the IEA's actions include India, Colombia, Singapore, Thailand, and Vietnam. Birol also mentioned that the IEA has begun studying demand-side measures to propose relevant recommendations to further ensure energy security. On Monday, international oil prices fell, buoyed by expectations that the transportation disruptions in the Strait of Hormuz may ease and that multiple countries may release more crude oil reserves. WTI April crude oil futures fell over 5% during the session, trading at $93.50 per barrel