IEA will have an emergency meeting to tackle soaring oil prices

IEA will have an emergency meeting to tackle soaring oil prices. 

On Friday, the International Energy Agency will convene an emergency conference of consuming nations to debate a new release of strategic reserves and a plan by the US to pump enormous amounts of oil starting in May to calm surging oil prices.

After leading producers group OPEC+ kept to plans to add a modest 432,000 barrels per day of supply in May, major consumers are looking for methods to mitigate the impact of global oil prices, which have risen more than 30% this year.

According to the International Energy Agency (IEA), sanctions imposed by the West after Russia’s invasion of Ukraine are likely to result in a loss of around 3 million barrels per day (bpd) of Russian oil in April. Moscow refers to its actions in Ukraine as a “special operation” aimed at disarming the country’s western neighbor.

To make up for the shortfall, President Joe Biden ordered the largest-ever release of petroleum from the US Strategic Petroleum Reserves on Thursday, releasing 1 million barrels per day (BPD) for six months beginning in May.

The declaration by the United States comes a day before IEA member countries meet at 1200 GMT on Friday to discuss a second emergency oil release following their March 1 agreement to release around 60 million barrels.

Several Asian Pacific members have stated that they will support the IEA’s objectives.

Japan would respond correctly to the release of its oil reserves while keeping a careful eye on global developments, the industry minister said on Friday.

“It’s unclear if the release would be done only by the US or whether the US will recommend it at the IEA meeting,” Japanese industry minister Koichi Hagiuda said at a press briefing.

“While keeping an eye on the world situation,” he continued, “we would like to respond responsibly.”

In a statement released last week, South Korea’s Ministry of Trade, Industry, and Energy stated that it intends to facilitate more international oil and gas cooperation. 

It has already committed to releasing 4.42 million barrels under the March 1 agreement.

A representative for Energy Minister Megan Woods stated in an email that New Zealand has reserves ready to be released if needed.

She said that New Zealand had already released 369,000 barrels as part of the IEA’s March 1 collective release agreement.

In the March deal, Australia agreed to release the entire 1.7 million barrels it had in its emergency stockpile to the US strategic reserves.

India, an associate member of the International Energy Agency, is dedicated to supporting initiatives for reserve releases, market volatility mitigation, and crude oil price stabilization, according to junior finance minister Pankaj Chaudhury, who spoke to parliamentarians this week.