IEA members move to build cushion against oil price shock

NEW DELHI: Member countries of the International Energy Agency (IEA), including India, late on Tuesday agreed to release 60 million barrels of oil from their emergency stockpiles as a message to the global oil markets that there will be no shortfall in supplies as a result of the conflict between Ukraine and Russia.
The decision was taken at a ministerial level extraordinary meeting of the 31-member governing board chaired by US energy secretary Jennifer Granholm in her capacity as chair of this year’s IEA Ministerial Meeting.
IEA members hold emergency reserves of 1.5 billion barrels. The 60 million barrels amounts to 4% of those stockpiles. This is equivalent to 2 million barrels a day for 30 days against a daily global supply of approximately 100 million barrels before the pandemic.