IEA Discusses 100 Million Barrel Oil Release Amid Buffer Crisis

The International Energy Agency Governing Board met Wednesday to coordinate the emergency release of up to 100 million barrels of diesel and crude oil. The move follows pledges made by Group of Seven leaders last week to stabilize diesel prices and ease market pressure. While the initial session focused on establishing the release process, the board is expected to continue discussions during its regular quarterly gathering next week.

The emergency action comes as global oil buffers shrink. Over 1 billion barrels were removed from commercial stockpiles this year to offset supply disruptions caused by conflicts in Ukraine and the Middle East. At the Energy Intelligence Forum in London, industry leaders warned that the system is straining, with less than 6 billion barrels of commercial inventories remaining globally. Amin Nasser, CEO of Saudi Aramco, noted that only 10% or less of those remaining stocks are practically available for immediate use.

Market fragility is further compounded by the United States Strategic Petroleum Reserve falling to its lowest level since October 1982. Executives from Chevron and Vitol cautioned that the loss of these buffers has increased the price floor for crude oil and left Western markets with few remaining inventories to offset new shortfalls.