The International Energy Agency's (IEA) 31 member countries agreed on Friday to a new release of oil from emergency reserves in response to the market turmoil caused by Russia's war in Ukraine, a statement from the IEA said.
The decision was taken to underscore the members' strong and unified commitment to stabilizing global energy markets.
The agreement was reached at an extraordinary meeting of the IEA Governing Board, which was held at the ministerial level and chaired by US Secretary of Energy Jennifer Granholm.
The IEA will announce the details of the new emergency stock release early next week, according to the statement. The statement has not identified the exact amount of release figures from the reserves.
The decision marks the second agreement to release oil from emergency reserves after Russia's war in Ukraine which started Feb. 24. The previous action taken by IEA member countries, announced last month, comprised release of a total of 62.7 million barrels from emergency reserves.
'The IEA Ministers reiterated their concerns about the energy security impacts of the egregious actions by Russia and voiced support for sanctions imposed by the international community in response. The Governing Board also encouraged member countries to support Ukraine in the supply of oil products,' read the statement.
Russia's war in Ukraine continues to put significant strains on global oil markets, resulting in heightened price volatility, the IEA said.
'This is taking place against a backdrop of commercial inventories that are at their lowest level since 2014 and a limited ability of oil producers to provide additional supply in the short term. Ministers also noted the particular difficulties in diesel markets,' said the statement.
IEA Members hold an emergency stockpiles of up to 1.5 billion barrels.
According to the statement, today's agreement will be the fifth time that the IEA releases emergency stocks. Previous collective actions were taken in 1991, 2005, 2011 and on 1 March, 2022.
'The prospect of large-scale disruptions to Russian oil production is threatening to create a global oil supply shock. Russia plays an outsized role on global energy markets,' the IEA said.
Russia is the world's third largest oil producer and the largest exporter. Russia's exports of about 5 million barrels a day of crude oil represent roughly 12% of global trade and its approximately 2.85 million barrels a day of petroleum products represent around 15% of global refined product trade.
Around 60% of Russia's oil exports are destined to Europe and another 20% to China, IEA data shows.
By Nuran Erkul Kaya