The current level of oil reserves in International Energy Agency (IEA) member states is sufficient and there is no need to increase strategic reserve needs, an IEA official said on Tuesday. The Paris-based IEA said earlier this month it was ready to act if necessary to maintain supplies to the oil market amid uncertainties caused by the conflict between Israel and Hamas and risks to oil flows from the East. Half.
Crude oil prices rose to more than $95 per barrel following the attack launched on October 7 by Hamas against Israel, which responded with a massive bombardment of the Gaza Strip. During the Russian invasion of Ukraine in February 2022, the 31 IEA member countries released strategic reserves to supply the oil market.
No direct impact of Middle East conflict on physical oil supply
The IEA requires member states to maintain oil reserves equivalent to at least 90 days of net oil imports and to be prepared to collectively respond to severe supply disruptions affecting the global oil market. The combined strategic reserves of IEA members currently amount to approximately 1.2 billion barrels.
However, some countries are considering taking steps to increase their stocks. The United States plans to buy six million barrels of crude oil to increase its reserves in December and January. According to Keisuke Sadamori, the conflict in the Middle East has not had a direct impact on the physical supply of oil. “But we must remain vigilant as the situation evolves,” he said.
Source: BFM TV
