Western nations agree to new release of emergency oil

The International Energy Agency announced Friday following an emergency meeting that its member countries will release additional oil from emergency reserves to cushion the blow caused by Russia’s invasion of Ukraine. However, the IEA did not disclose key details on the size and timing of this additional emergency action, which would be in addition to the historic released announced by the White House on Thursday. The IEA said details will be made public early next week. The latest steps from the IEA mark just the fifth time in the agency’s history that it has coordinated a release of emergency stockpiles. In a statement, the IEA said energy ministers from its 31 member countries “reiterate their concerns about the energy security impacts of the egregious actions by Russia and voiced support for sanctions imposed by the international community in response.” IEA members include the United States, the United Kingdom, Japan and Australia. “The prospect of large-scale disruptions to Russian oil production is threatening to create a global oil supply shock,” the IEA said in the statement, noting that Russia is currently the world’s third-largest oil producer and the largest exporter. After announcing a record release of 180 million barrels of oil, US President Joe Biden said Thursday other countries could release as many as 30 million to 50 million barrels of oil. That would be in addition to the historic US release. “The higher the number, the more likely the prices come down,” Biden told reporters. In early March, the IEA announced the coordinated release of 60 million barrels from emergency reserves of member nations, including 30 million from the US Strategic Petroleum Reserve. In addition to the reserve releases, the IEA said its governing board recommends governments and consumers “maintain and intensify conservation efforts and energy savings.” Russia exports about 5 million barrels a day of crude oil, representing roughly 12% of global trade, according to the IEA.