IEA Says Oil Reserves Remain Ample After Record Emergency Stock Release

Alsharq Tribune-Al Otaify 

The International Energy Agency (IEA) said Tuesday that its member countries still maintain substantial emergency oil reserves, despite carrying out the largest-ever coordinated drawdown from strategic stocks.

In a statement, the agency said member countries have withdrawn around 290 million barrels of oil since the announcement on March 11, while collectively retaining more than 1 billion barrels in emergency reserves.

The IEA said members agreed to release an unprecedented 400 million barrels of oil from strategic stocks after global crude prices surged following developments in the Middle East conflict.

The agency explained that the continued flow of significant supplies from Gulf countries through alternative routes bypassing the Strait of Hormuz, coupled with increased exports from other producers including the United States, Brazil, Venezuela and Kazakhstan, helped offset part of the supply decline. Meanwhile, China's reduction of crude oil imports by around 50% compared with pre-conflict levels helped stabilize markets.

The IEA’s estimates showed that Gulf countries' exports remain below the peak level reached in late June but are still significantly higher than levels recorded from early March through mid-June.

In a related development, oil prices edged higher Tuesday as markets assessed reports of mediation efforts aimed at halting exchanges of attacks between the United States and Iran, as well as threats by Yemen's Houthis to impose a maritime navigation blockade on Saudi Arabia.