PARIS (AP) \u2014 The International Energy Agency agreed Wednesday to release the largest volume of emergency oil reserves in its history, in a bid to counter the effects on energy markets of the war in the Middle East.<\/p>\n
The Paris-based organization said it will make 400 million barrels of oil available from its members\u2019 emergency reserves. It\u2019s a larger stock than the 182.7 million barrels that were released in 2022 by the IEA\u2019s 32 member countries in response to Russia\u2019s full-scale invasion of Ukraine.<\/p>\n
\u201cWithout sufficient routes to market and with no more available storage, Middle East oil producers have started to reduce production,\u201d IEA executive director Fatih Birol said. \u201cAnd we have seen further attacks and damage to energy and energy-related infrastructure. Refinery operations have also been disrupted, with major implications for jet fuel and diesel supplies in particular.\u201d<\/p>\n
IEA member countries currently hold over 1.2 billion barrels of public emergency oil stocks, with a further 600 million barrels of industry stocks held under government obligation.<\/p>\n
In response to U.S. and Israeli strikes, Iran has attacked commercial ships<\/a> across the Persian Gulf, escalating a campaign of squeezing the oil-rich region as global energy concerns mount<\/a>.<\/p>\n <\/p>\n \n AP AUDIO: IEA agrees to record release of emergency oil reserves in an effort to calm surging prices\n <\/p>\n AP\u2019s Lisa Dwyer reports on an international move to release oil reserves to help tamper down high prices and limited supply.<\/p>\n Iran has effectively stopped cargo traffic in the narrow Strait of Hormuz through which about a fifth of all oil is shipped from the Persian Gulf toward the Indian Ocean. It has also targeted oil fields and refineries<\/a> in Gulf Arab nations, aiming at generating enough global economic pain<\/a> to pressure the United States and Israel to end their strikes.<\/p>\n Germany, Austria and Japan said earlier Wednesday they would release parts of their oil reserves<\/a> following an IEA request for members to release the record 400 million barrels to help temper energy price spikes due to the Iran war<\/a>. <\/p>\n Group of Seven energy ministers met Tuesday at IEA headquarters in Paris to look at ways to bring down prices. Birol said afterward that they discussed all available options, including making IEA emergency oil stocks available to the market.<\/p>\n The IEA reserves were established in 1974 following the Arab oil embargo.<\/p>\n \u201cThis is a major action aiming to alleviate the immediate impacts of the disruption in markets,\u201d Birol added. \u201cBut, to be clear, the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz.\u201d <\/p>\n Birol said that 15 million barrels per day of crude oil and another five million barrels per day of oil products normally pass through the Strait of Hormuz.<\/p>\n \u201cThis amounts to around 25% of the world\u2019s oil trade via sea. And now the flows of oil, gas and other commodities through the strait have all but stopped.\u201d<\/p>\n The G7 is comprised of the leading industrialized nations of Canada, the United States, France, Italy, Japan, Germany and Britain. Austria is not a member. <\/p>\n The group\u2019s leaders, including U.S. President Donald Trump, met Wednesday via videoconference to discuss energy issues. <\/p>\n During his introductory remarks, French President Emmanuel Macron praised the IEA decision to release emergency oil stocks, saying it amounted to the equivalent of \u201c20 days of the volume being exported through the Strait of Hormuz.\u201d<\/p>\n The IEA move was prepared at the G7 level, Macron said, noting that the amount pledged by the G7 nations, alone, comprises 70% of the total and that France would contribute 14.5 million barrels.<\/p>\n \u201cI think it\u2019s very important to see as well everything we can do in order to increase our global production,\u201d Macron added.<\/p>\n Germany\u2019s economy ministry, Katherina Reiche, said the IEA asked Germany to release 2.64 million tons of its oil reserves. It was not immediately clear how much Austria was releasing.<\/p>\n She said it would take a couple of days before the delivery of the first quantities.<\/p>\n \u201cGermany stands behind the IEA\u2019s most important principle of mutual solidarity,\u201d Reiche said.<\/p>\n The German government also said it will introduce a measure to allow gas stations in Germany to raise fuel prices no more than once a day. The federal government wants to introduce this as quickly as possible, Reiche said.<\/p>\n According to the IEA, export volumes of crude and refined products are currently at less than 10% of prewar levels.<\/p>\n In Austria, starting Monday, price increases at gas stations will be allowed only three times a week, the country\u2019s economy minister said. Wolfgang Hattmannsdorfer said his country was releasing part of the emergency oil reserve and extending the national strategic gas reserve, adding: \u201cOne thing is clear: in a crisis, there must be no crisis winners at the expense of commuters and businesses.\u201d<\/p>\n