Oil stock coming soon to Iran-wracked markets

More than 400 million barrels of oil from International Energy Agency emergency reserves will begin flowing soon, the agency said in ​its most detailed account of the rollout of the plan to ‌combat a spike in crude prices since the start of the Iran war.

Stocks from Asia and Oceania countries will be available immediately and stocks from Europe and the Americas will ​be available at the end of March, the agency said on ​Sunday, four days after the agreement was announced.

Governments have committed ⁠to make available 271.7 million barrels of oil from government stocks, 116.6 ​million barrels from obligated industry stocks and 23.6 million barrels from other ​sources, the statement said.

The bulk of the pledged reserves – 195.8 million barrels – are from member countries in the Americas, 172.2 million of that from government stocks, the IEA said.

Asia Oceania member countries have ​committed to contribute 108.6 million barrels, 66.8 million of that from government stocks, and ​Europe has pledged 107.5 million barrels, including 32.7 million from government stocks.

The IEA statement said that ‌72% ⁠of planned releases are in the form of crude oil and 28% are oil products.

Western economies coordinate their strategic oil stockpiles through the IEA, which was formed in 1974 after the oil crisis. This is the sixth ​coordinated stockpile release since ​the agency’s creation.

The ⁠release is aimed at combating a spike in oil prices caused by disruptions to around a fifth of ​global oil and gas supply along the Strait of Hormuz ​since the ⁠war began February 28, according to the IEA. Iran said on Wednesday the world should be ready for oil at $200 a barrel as its forces continue ⁠to hit ​merchant ships on the strait.

IEA members hold ​emergency stockpiles of more than 1.2 billion barrels, with another 600 million in industry stocks held ​under government obligation.