Europe to Release 108 Million Barrels of Oil from Reserves Starting End of March

(Patria) - Europe will release 73 million barrels of oil products and about 35 million barrels of crude oil from reserves onto the market starting at the end of March, according to data from the International Energy Agency (IEA).

European governments will release 32.7 million barrels from strategic reserves, and companies will release 74.7 million barrels of oil and oil products, the IEA announced on Sunday.

Approximately two-thirds of the barrels released, or 73 million barrels, will be oil products, and the remaining 35 million barrels will be crude oil.

The United States, on the other hand, will release only crude oil from its strategic reserves starting at the end of March, amounting to 172.2 million barrels.

IEA member countries unanimously accepted the agency's proposal last week to release 400 million barrels from reserves to stabilize oil markets amid supply disruptions from the Middle East.

In total, member countries will release 411.9 million barrels onto the market, according to the agency's weekly report. Crude oil will account for 72 percent of the barrels, and refined products for 28 percent.

Member countries in the Asia and Oceania region intend to release almost 109 million barrels of oil and oil products from their reserves immediately, the IEA stated in a press release.

The war in the Middle East has led to the largest supply disruption in history. The release of barrels from reserves provides a "significant and welcome respite," according to the IEA.

"However, the most important factor in the process of returning to stable supply is the normalization of regular transit of shipments through the Strait of Hormuz," the IEA emphasized.

They also noted that adequate security measures and physical protection for cargo carriers are key to resuming deliveries.

"We must be prepared that the current situation could last," warned IEA Executive Director Fatih Birol yesterday.

"Even if transit through the Strait of Hormuz resumes tomorrow, the IEA estimates that it will take time for global energy trade to recover," Birol said.

IEA member countries currently hold over 1.2 billion barrels of oil in strategic reserves, and companies hold an additional 600 million barrels due to legal obligations, the head of the IEA noted last week, according to a statement on the agency's website.

Excluding the 400 million barrels prepared for the market, member countries will still have 1.4 billion barrels in reserves.

In addition to the 21 European Union member states, the group includes 11 other countries, including the United States, the United Kingdom, Turkey, New Zealand, Japan, Canada, and Australia.