The Strategist

U.S., IEA to release 240M barrels of oil from strategic reserves

04/07/2022 - 10:15

According to Bloomberg, which cites persons familiar with the issue, the United States and members of the International Energy Agency (IEA) plan to transfer 240 million barrels of oil from strategic reserves to the market.

"In addition to the 180 million barrels of oil already announced by (US president) Joe Biden from strategic reserves, US allies at the International Energy Agency will release 60 million barrels of oil from their strategic stores," the agency stated, citing its sources. It is estimated that 240 million barrels will be released this way.

On April 1, Biden revealed his intention to release one million barrels per day from the country's strategic reserve for six months in order to stabilize the oil market and lessen price volatility.

Between May and October of this year, these volumes are likely to hit the market. He further indicated that other IEA members may supply additional 30-50 million barrels to the market.