The UK announced Thursday it will release 13.5 million barrels of oil as part of a coordinated action by members of the International Energy Agency to make about 400 million barrels available to the market in an effort to stabilize global oil supplies.
The release is aimed at preventing short-term supply disruptions that could trigger sharp price volatility and weigh on the global economy.
Energy Secretary Ed Miliband said the move was part of a broader effort by allied countries to respond to recent disruptions in oil markets.
"With this action, the UK is playing our part in working with our international allies to address the disruption in oil markets," Miliband said in a statement.
He added that the UK has strong and diverse energy supplies and that a price cap mechanism would continue to help shield consumers from high energy bills until July.
The coordinated release comes as policymakers emphasize that restoring the safe passage of oil tankers through the Strait of Hormuz remains the most effective long-term solution to ensuring stable global energy supplies.
The UK said it would continue working with international partners to monitor developments in the Middle East.
- 'Release will not affect domestic supply levels'
Under IEA rules, member countries are required to hold emergency oil stocks equivalent to at least 90 days of net oil imports to help cushion the global economy against major supply disruptions.
In the UK, emergency stocks are held by major suppliers, including refiners and oil importers. The government said the release would not affect domestic supply levels.
The UK currently holds about 76.6 million barrels of oil in total reserves, compared with global oil demand of around 104 million barrels per day and British demand of roughly 1.5 million barrels per day.
The UK has participated in coordinated IEA stock releases four times in the past three decades, including during the Iraq's invasion of Kuwait, after the Hurricane Katrina and Hurricane Rita, during disruptions linked to the Libyan Civil War, and in coordinated releases following market turmoil in 2022.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr