FRANKFURT, Germany (AP) – The International Energy Agency’s 31 member countries agreed Tuesday to release 60 million barrels of oil from their strategic reserves – half of that from the United States – “to send a strong message to oil markets” that supplies won’t fall short after the Russian invasion of Ukraine.
The board of the Paris-based IEA made the decision at an extraordinary meeting of energy ministers chaired by U.S. Energy Secretary Jennifer Granholm. She said in a statement that U.S. President Joe Biden approved a commitment of 30 million barrels and that the U.S. is ready to “take additional measures” if needed.
The group’s “decision reflects our common commitment to address significant market and supply disruptions related to President Putin’s war on Ukraine,” Granholm said.
Russia plays an outsized role in global energy markets as the third-largest oil producer. Its exports of 5 million barrels of crude per day amount to about 12% of the global oil trade. Some 60% goes to Europe and another 20% to China.
So far, U.S. and European sanctions have not barred oil or gas exports and have included exceptions for transactions to pay for oil and gas. Western leaders are reluctant to restrict Russian oil exports at a time when global energy markets are tight and high prices are fueling inflation in developed economies.