IEA Unleashes Largest-Ever Oil Reserve Release as Global Supply Shaken by Iran–U.S. Conflict
Global oil supply is facing significant pressure amid escalating tensions between Iran and the United States. A recent report from the International Energy Agency indicates that supply disruptions have reached approximately 10 to 13 million barrels per day, equivalent to nearly 12 percent of total global oil supply. This marks one of the most severe disruptions since the global energy crises of the 1970s.
Prior to the escalation, the global oil market was in a surplus მდგომარეობ, with an oversupply of around 2.46 million barrels per day. However, the situation has shifted dramatically as the conflict intensified, with the surplus shrinking sharply to just about 410,000 barrels per day. This places the market on the brink of a supply deficit, increasing price sensitivity to any additional disruptions.
In response, the International Energy Agency and its member countries have taken unprecedented action by releasing approximately 400 million barrels of oil from strategic reserves. This marks the largest coordinated release in the agency’s history, involving a total of 32 member nations in a collective effort to stabilize the global energy market.
Several key countries have made significant contributions to this release. The United States accounts for the largest share, followed by Japan with around 80 million barrels, South Korea contributing approximately 22 million barrels, and Germany adding nearly 20 million barrels. Other European and Asian nations have also participated, underscoring the scale and urgency of the global response.
Despite this massive intervention, the release is unlikely to fully offset the supply shortfall. With disruptions potentially exceeding 10 million barrels per day, the 400 million barrels of reserves serve primarily as a temporary buffer to ease price spikes rather than a long-term solution to the ongoing supply crisis.
From a pricing perspective, this imbalance creates strong upward pressure on oil markets. Assuming a net deficit of around 5 to 7 million barrels per day even after reserve releases, oil prices could move into the range of USD 105 to USD 120 per barrel in the near term. Rising oil prices are expected to feed directly into global inflation through higher energy and transportation costs. In turn, persistent inflationary pressure is likely to boost demand for safe-haven assets such as gold, potentially driving prices higher this week as investors seek protection amid heightened economic and geopolitical uncertainty.
Source : Newsmake.id
