Countries with Strategic Oil Reserves Revealed in Exclusive Report

International Energy Agency Unveils Largest Oil Release from Strategic Reserves

The International Energy Agency has agreed to release 400 million barrels of oil from its strategic emergency reserves, the largest stock draw in the agency’s history. The move comes as tensions between Iran and the US escalate over the country’s blockade of the Strait of Hormuz, a critical waterway for global oil and gas supply.

Iran’s blockade, which began on February 28, has disrupted shipping through the strait, with vessels carrying 20% of the world’s oil and liquefied natural gas (LNG) unable to pass. The US administration has attempted to pressure Iran into reopening the strait, but its efforts have been met with resistance.

In response to the crisis, several countries, including Saudi Arabia, UAE, Iraq, and Kuwait, have cut their oil output, raising concerns about global supply. In an effort to mitigate the impact, the IEA has agreed to release 400 million barrels of oil from its reserves, which is significantly higher than the 182 million barrels released in 2022 following Russia’s invasion of Ukraine.

The IEA’s strategic oil reserve program allows member countries to draw on emergency stocks during times of crisis. The agency’s members currently hold over 1.2 billion barrels of oil in these reserves, with additional stockpiles held by private organizations under government mandate.

China, a non-IEA member, also holds significant strategic oil reserves, with estimates suggesting it has around 10 million tonnes of crude inventories, equivalent to approximately 30 days’ worth of imports. The country’s reserves are primarily located along its eastern and southern coastal regions.

Source: Al Jazeera