Fatih Birol, Executive Director of the International Energy Agency, announced on Tuesday the agency's readiness to coordinate the release of additional emergency oil reserves from member countries, amid continued pressure on global fuel markets and rising diesel prices.
Reuters quoted Birol as saying during a conference held in London that the current priority is to accelerate the release of more than 20 million barrels of diesel under a plan previously approved by the agency, noting that the timing of releasing these quantities depends on decisions by member countries and market developments.
These moves come as supply disruptions from the Gulf and Russia have led to rising diesel prices in several major markets, including the United States, amid growing concerns about the impact on inflation rates and economic activity.
Priority to pump diesel
Birol emphasized that the agency is ready to take additional steps if member countries deem it necessary, pointing out that about 80 percent of the quantities pledged to be released under the exceptional plan of 400 million barrels of crude oil and petroleum products have already been released.
He warned of ongoing challenges facing fuel markets, noting that he sees no reliable signs of a return to normalcy by 2027, given the continued global shortage of diesel supplies.
Rising oil prices
Birol's comments coincided with a rise in oil prices, as Brent crude surpassed $111 per barrel, while diesel prices continued to hit high levels driven by fears of supply shortages.
The International Energy Agency coordinates the use of strategic oil reserves by industrialized member countries to address global supply disruptions and limit sharp market fluctuations.
Last March, the agency launched one of the largest coordinated releases of oil reserves in its history to help stabilize energy markets and ensure supply availability in the face of geopolitical crises and global supply chain disruptions.
Source: Syrian Arab News Agency (SANA)
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