The International Energy Agency said member countries agreed to complete the release of 100 million barrels of oil still outstanding from a March intervention. The US had informally lobbied for an additional release to ease diesel prices, but made no formal proposal at the meeting.
Member countries agreed to complete the release of 100 million barrels of oil that remain outstanding from the International Energy Agency's March intervention, the agency said. The March move aimed at cooling high fuel prices.
Diesel release to be accelerated
Member countries will accelerate distribution of the remaining volumes, including 20 million barrels of diesel, the agency said after a governing board meeting on Thursday. According to the agency, the diesel should be released "as soon as possible". Members have so far tapped 330 million barrels out of 400 million initially pledged in March.
The Paris-based IEA said the total eventually tapped will exceed the 400 million barrels announced in March, because some members released more than they initially agreed. The 100 million barrel figure likely includes 40 million barrels that the US itself said it would release in September.
US lobbying meets European skepticism
Bloomberg reported that the US had informally lobbied for an additional release to help quell rising diesel prices. However, the US did not make a formal proposal for extra oil at Thursday's meeting, and European officials have expressed skepticism that now is a good time to release extra barrels, according to people familiar with the matter.
The US Energy Department said further diesel-focused actions are under review. Following President Trump's G7 announcement, the department said, all European nations that are IEA members have committed to complete their March commitments immediately and release additional barrels.
Washington has pressed European nations to do more to cushion the impact of the Iran war and Ukrainian strikes on Russian refineries, which are squeezing diesel supplies and driving pump prices to records. The IEA declined to elaborate beyond its statement, in which member nations said they are willing to take further actions on global energy market challenges.
Source: Rigzone
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