Chief of IEA says that IEA is prepared to tap into global oil reserves if necessary

Fatih Birol said on Monday that he hoped another oil release was not required, but "we are ready to act" in the event of an energy shock due to the war with Iran. Last month, the 32-member IEA decided to release 400,000,000 barrels of 'oil from its reserves. This was the largest coordinated release in history, and it was done in an effort to calm down oil markets. The U.S. agreed to release 172,000,000 barrels of oil from its Strategic Petroleum Reserve, which is the largest oil and natural gas producer in the world.

Birol stated, "I sincerely hope that we won't have to do this, but we will be ready to take action if necessary." Birol said at an Atlantic Council meeting that the war with Iran has caused the worst energy disruption in history. He also stated that over 80 oil and gas installations, including production, terminals and refineries throughout the Middle East were damaged. Benchmark oil prices are currently trading at around $100 per barrel. Birol stated that the oil releases are "not a fix" due to the large scale of production shutdowns and the?closure the Strait of Hormuz.

(source: Reuters)