International agency announces additional oil supply release

The leader of the International Energy Agency (IEA) announced on Wednesday the release of an additional 60 million barrels of oil into the global marketplace amid high fuel prices following Russia’s invasion of Ukraine. 

IEA Executive Director Fatih Birol said in a tweet that the organization of 31 member countries is “moving ahead with a collective oil stock release of 120 million barrels” including 60 million that were already released by the U.S.

He added that more specific details would come soon. 

The move follows an announcement from the U.S. last week that it would release about 180 million barrels from its strategic reserves over the next six months as part of an effort to reduce gasoline prices. 

Prices soared after Russia’s invasion of Ukraine in late February, as many Western buyers began to reject Russian barrels. Gasoline prices were already relatively high prior to the invasion since global oil production has not fully recovered from coronavirus-related cuts.

When it announced the U.S. move, the White House said that the release would be coordinated “with allies and partners around the world, and other countries are expected to join in this action.”

Previously, the IEA had released 60 million barrels in early March, half of which came from the U.S.

The latest move also comes after a group of oil producing countries called OPEC+, which includes Russia and Saudi Arabia, stuck to modest production increases despite some calls for more global oil.