The International Energy Agency calls for accelerating the withdrawal of oil reserves

The International Energy Agency called on its members to accelerate the release of the quantities of oil they pledged under a previous agreement, pointing to the global diesel crisis that is currently hitting the markets.

The agency explained in a press statement, on Sunday, that before the IEA Board of Directors meeting on October 15, the agency’s Executive Director, Fatih Birol, wrote to member governments on the subject of what is happening in global diesel markets, and said: “Members who have not yet delivered the quantities that were pledged under the March collective action, we look forward to seeing whether they are able to accelerate the remaining issues to fulfill this prior commitment, with priority given to diesel.” “As we discussed last Wednesday, some members have already issued larger volumes than they initially pledged in March.”

The statement explained that Birol focused on “how current market conditions deserve immediate attention, and how they can best be managed through continued cooperation among members of the International Energy Agency.”

The International Energy Agency had agreed with the members to withdraw 400 million barrels of oil, and then announced at the beginning of this October, the members’ agreement to accelerate the withdrawal of 100 million barrels of reserves.

Birol indicated in the statement that the collective work last March is still ongoing and provides a framework for further steps in the near term. He also pointed out the danger of “renewed attacks on civilian and energy infrastructure in Saudi Arabia, including the tragic attacks on the international airport in Riyadh.”

The Agency called for taking into account the IEA's diesel market assessment and the G7 leaders' statement, while encouraging all members, including those that have completed releases or withdrawals from pledged reserves, to assess whether additional diesel releases are necessary, and to determine their scope, timing and complementary nature, when they consider this appropriate.

The IEA's Executive Director noted that the IEA's Board of Directors meeting on October 15 will provide a valuable opportunity to evaluate these efforts. He added: “As we did in March, I believe we can once again demonstrate the IEA’s ability to work together to support energy security and economic stability.”