IEA emergency stock issue eases oil prices

This is the second mass release this year by IEA members in the wake of significant tensions in oil markets following disputed supplies amid the Russia-Ukraine crisis.

Last month, IEA members agreed to release 62.7 million barrels of oil.

At 0923, Brent’s June contract on the Intercontinental Exchange was at $100.06 per barrel, down 0.52% from its previous close. West Texas Intermediate’s May contract fell 0.39% to $95.66 a barrel on the NYMEX.

Commitments submitted by IEA members reached 120 million barrels to be issued over a six-month period. The US will contribute about 60 million barrels, part of a major drawdown from its Strategic Petroleum Reserve (SPR) announced on March 31.

An IEA statement said that over the next six months, about 240 million barrels of emergency oil stocks, the equivalent of more than 1 million barrels per day, would be made available to the global market.

Fateh Birol, Executive Director of the IEA, said, “The unprecedented decision to launch two emergency oil stock releases just one month apart, and on a larger scale than anything in the history of the IEA, aims to protect the global economy from social member countries.” and the economic impact of the oil shock following Russia’s aggression against Ukraine.”

Following the IEA’s announcement, India said it was looking at ways to support the agency’s move to release oil from its emergency reserves.

The Union Ministry of Petroleum and Natural Gas said in a statement that the Government of India welcomes the IEA’s announcement of the release of a collective oil stock of 120 million barrels.

“In the interest of cooperating with like-minded countries on these positive initiatives, the Indian government is examining what it can do to support these actions,” the ministry said in its statement on Thursday.

As a major consumer of energy, India has consistently recognized the importance of stable, affordable and accessible global energy markets, adding that the Indian government hopes that these initiatives will bring equity to the global energy market.

In February, the ministry said it was committed to “support initiatives for releases from strategic petroleum reserves”. Rising prices and supply concerns

As per the consumption pattern of 2019-20, the total capacity of 5.33 Million Metric Tonnes (MMT) installed at strategic petroleum reserves facilities is estimated to meet the crude oil requirement of about 9.5 days.

India has three strategic reserves – Visakhapatnam (1.33 MMT), Mangaluru (1.5 MMT) and Padur (2.5 MMT) – operated by the Indian Strategic Petroleum Reserve (ISPRL).

Meanwhile, Indian oil marketing companies did not change the retail fuel prices for the second consecutive day on Friday. petrol is sold in delhi 105.41 per liter and for diesel 96.67 per liter.

Since the daily price revision that resumed on March 22, the oil marketing companies have increased the fuel prices by a total of Rs. 10 per liter each.