PARIS, March 11 — The International Energy Agency (IEA) is to recommend the release of 400 million barrels of oil, the largest such move in IEA history, three sources said today, to try to restrain soaring crude prices amid the US-Israeli war with Iran.

One of the sources said the release would be spaced over at least two months, while Spain’s energy minister said countries would have up to 90 days to release that volume.

Three sources said the Paris-based IEA would publish its recommendation at 1300 GMT (9pm Malaysian time) today, ahead of a 1400 GMT meeting of G7 leaders chaired by France.

The IEA did not immediately respond to a request for comment.

In 2022, IEA member countries released 182.7 million barrels over two months, which was then the largest in IEA history, when Russia launched its full-scale invasion of Ukraine.

“I would say it is the largest proposal in the history of the International ⁠Energy Agency,” said Sara Aagesen, Spain’s energy minister.

“During the ⁠war in Ukraine, they were talking about releasing around 182 million barrels, ⁠and now it’s an amount that is ⁠more than double their ⁠proposal,” she added.

Western economies coordinate their strategic oil stockpiles through the IEA, which was formed after the 1970s oil crisis.

French President Emmanuel Macron is due to chair the meeting of G7 leaders later today ⁠after the bloc said its energy ministers supported the use of reserves.

“In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves,” the G7 energy ministers said.

One G7 source told Reuters that although no country currently faced a physical shortage of crude, prices were rising sharply, and leaving the situation unattended was not an option.

However, any actual release cannot start immediately ⁠because decisions on aspects such as country allocations and timing require further discussion, the source said.

“The IEA secretariat is expected to propose scenarios, based on expected market impact, and outreach may extend ⁠to non-IEA members like China and India,” the source said.

IEA member South Korea is participating in the discussion “and ⁠reviewing its position,” ⁠a spokesperson for the country’s industry ministry said today.

Oil prices rebounded today as markets doubted whether the International Energy Agency’s reported plan for a record release of oil reserves could offset potential supply shocks from the US-Israeli conflict with Iran. — Reuters

 Malay Mail – Money