AI-generated illustration, for illustrative purposes.
The International Energy Agency (IEA) is seriously considering a large-scale drawdown of member countries’ strategic oil reserves. This unprecedented measure would aim to curb the steep rise in crude prices caused by the conflict in the Middle East.
The idea was officially proposed at an extraordinary IEA meeting held in Paris on Tuesday. The volume under consideration would exceed the 182 million barrels already released in two phases by member countries in 2022 following Russia’s invasion of Ukraine.
The initiative comes amid extreme oil price volatility. At around 02:40 GMT on Wednesday, Brent was up 0.40% at $88.15 per barrel after briefly exceeding $100 earlier in the week—its highest level since mid-2022. G7 finance ministers, meeting in Paris on Monday, had already discussed the possibility of drawing on strategic stocks.
President Emmanuel Macron is also due to chair a videoconference of G7 heads of state and government on the “economic consequences” of the war in the Middle East, with particular attention to the “energy situation” and measures to mitigate it.
In 2022, the coordinated release of 182 million barrels helped address market disruption following the war in Ukraine. If confirmed, the current operation would therefore represent an even larger effort, reflecting the seriousness of the present crisis.
For now, no official confirmation has been issued by the IEA or G7 governments. Markets remain focused on a decision expected in the coming hours, which could mark a turning point in the international response to the energy crisis triggered by the Middle East conflict.