Report: IEA Proposes Unprecedented Release of 400 Million Barrels from Oil Reserves, More Than Double 2022 Levels
To counteract soaring oil prices triggered by potential war between the U.S., Israel, and Iran, the International Energy Agency (IEA) is spearheading the largest-ever emergency oil reserve release initiative in history.
On March 11, according to sources cited by The Wall Street Journal, the proposed release volume could reach as high as 400 million barrels, more than double the previous largest intervention by the IEA—the 182 million barrels released after the Russia-Ukraine conflict in 2022. According to Bloomberg, citing informed sources, the proposed release is estimated between 300 million and 400 million barrels, representing 25% to 30% of the IEA’s 1.2 billion barrel total reserve among member countries.
IEA member nations are expected to make a decision on this proposal on Wednesday (March 11). Under procedural rules, if no member objects, the plan will automatically go into effect; however, any single objection could lead to delays.
Meanwhile, diplomatic coordination is accelerating. According to Reuters, French President Emmanuel Macron, current G7 rotating chair, will convene a G7 leaders’ teleconference at 10:00 p.m. Beijing time on Wednesday, focusing on the Iranian crisis and the sharp rise in energy prices. The meeting will center on the 'energy situation' and the Strait of Hormuz, with clear signals emphasizing that 'this will not merely be verbal rhetoric.'
G7 Backs Reserve Use in Principle, Details Still Pending
As reported previously by Wallstreetcn, key signals were sent ahead of the summit. According to Bloomberg, G7 energy ministers issued a statement on Wednesday stating they would work closely with the IEA and principally support 'taking proactive measures in response to this situation, including tapping strategic reserves.' The statement emphasized that they are 'closely monitoring energy market dynamics' and strengthening coordination 'within the G7 and with international partners.'
At a prior G7 energy ministers’ meeting held Tuesday, no consensus was reached on reserve release, instead calling on the IEA to first assess the situation. This language of 'principle support' indicates that specific action plans remain pending final approval at the leadership level. Additionally, G7 finance ministers and the IEA director held an emergency meeting, with core topics including assessing the real impact of the conflict on global oil supply and discussing the feasibility of a joint reserve release mechanism.
Abundant Reserves But Intense Pressure, Markets Await
The IEA had already convened an emergency meeting last Tuesday to evaluate potential supply crises. Internal documents reveal that the IEA is 'ready to act at any time to support oil market stability.' These confidential documents note that IEA member countries hold over 1.24 billion barrels of public reserves, plus approximately 600 million barrels of industry stockpiles that can be mobilized when needed—enough to cover nearly one month of total oil demand for member nations.
Despite ample reserves, energy advisory firm Rapidan Energy Group released a report Sunday warning that IEA members will face 'huge pressure to release strategic reserves.' With the G7 summit approaching and the IEA's reserve release decision entering its final countdown, oil prices—which have already been highly volatile this week—may face another critical turning point.