IEA chief says ‘ready’ to release more oil reserves if needed

The head of the International Energy Agency (IEA) said Wednesday that he was “ready” to approve the release of more oil reserves if needed to cushion the impact of the Middle East war on global supplies.

Fatih Birol made the comments on a visit to Tokyo, where Japanese Prime Minister Sanae Takaichi asked the IEA to carry out an additional release “in case the situation drags on”.

Since last month, US-Israeli attacks on Iran and Tehran’s subsequent responses, including its de facto closure of the Strait of Hormuz, have severely disrupted global oil supplies, causing concern over rising prices in Japan and other import-dependent Asian economies.

The IEA previously said member countries would unlock 400 million barrels of oil from their reserves to ease the impact of the Middle East war, the biggest such release ever.

Birol said Wednesday that the amount was only 20 percent of the agency’s stocks and there was “still a significant amount of oil” left over.

“If and when necessary we are ready to move forward (with another release), but I very much hope that it will not be necessary,” he said.

“The world is facing a serious energy security threat, but the International Energy Agency is ready to play its core role of being a guardian of global energy security.”