The IEA proposes releasing record oil reserves, exceeding the 182 million barrels released in 2022.

The International Energy Agency (IEA) has proposed a plan to release oil from its reserves on the largest scale in history. This move aims to cool down oil prices, which are under strong upward pressure due to the complex developments in the conflict in the Middle East.

According to sources fromWall Street JournalThe amount of oil proposed to be released onto the market this time is expected to surpass the record of 182 million barrels that IEA member countries released in two phases in 2022, the time of the Russia-Ukraine conflict.

Roadmap and implementation conditions

To implement this plan, the IEA convened an emergency meeting of member states on March 10th. Countries are expected to make a final decision on the proposal on March 11th. According to internal sources, the plan will be approved if there is absolute consensus, meaning no country opposes it. Conversely, even a single dissenting vote could delay the process.

Previously, G7 energy ministers had failed to reach a consensus on releasing oil from strategic reserves. Instead, the group requested the IEA to conduct a thorough assessment of the market situation before taking any concrete action.

Reaction of the global oil market

Immediately after the IEA's proposal was announced, both US WTI and Brent crude oil prices recorded slight declines. This suggests that market expectations of additional supply could ease current tensions.

On March 9th, oil prices reached their highest level in nearly four years. However, the upward momentum stalled and began to decline on March 10th following statements from President Donald Trump about the possibility of an early end to the conflict. The combination of the prospect of peace and the potential for intervention from strategic reserves is creating signals for a correction in the global energy market.