IEA’s Birol urges faster diesel stock releases

On Sunday, International Energy Agency chief Fatih Birol told member governments to speed up the oil stock releases they pledged in March and to put diesel first. He also asked them to judge whether more releases are needed, with diesel markets still tight because of the Iran war.unn+1

Countries that have not yet finished their March releases should move faster and give priority to diesel, Birol said. Those that have already finished were asked to decide whether new releases are needed, and if so how large they should be and when they should happen. "Current market conditions deserve immediate attention, and the best way to manage them is through continued cooperation among IEA members," Birol said, according to Bloomberg reporting cited by Ukraine's UNN. The agency's governing board is scheduled to meet on October 15.voiceofemirates+1

Pressure builds after G7 deal

Birol's appeal adds to a week of moves to cool record fuel prices. On October 7, IEA members agreed to speed up the March releases and to prioritise diesel "to the extent possible, given the current tightness in diesel markets," Birol said in a statement reported by Reuters. The agency said about 100 million barrels pledged in March had still not reached the market. About 325 million barrels have been released so far, and some countries have released more than they promised.reuters+1

That decision came after Group of Seven countries agreed on October 2 to release 100 million barrels of diesel and crude oil through the IEA over four months. Under that deal, G7 members and partners are to release a large amount of diesel up front, within 20 days. U.S. President Donald Trump, who has been pushing for help to bring fuel prices down, welcomed the move. In their statement, the G7 countries said they would meet through the IEA "to discuss the possibility of additional diesel releases as necessary". Some analysts and governments said the IEA's 100 million barrels was not necessarily new supply on top of the March pledge.brecorder+1

Supply strains deepen

According to UNN, part of the reason the market has worsened is that attacks on civilian and energy infrastructure in Saudi Arabia have started again. Disruption to tanker traffic and damage to refineries linked to the wars in Iran and Ukraine have pushed diesel prices to record levels in several markets.unn+1

IEA governments still hold about 1.1 billion barrels of publicly held emergency oil stocks, including more than 200 million barrels of diesel, the agency said. The agency's 32 members agreed in March to release 400 million barrels, the largest collective action in its history. The IEA has said it is ready to release more of its stocks if needed. The October 15 board meeting will test whether members will commit new volumes or only finish what they have already pledged.finance.yahoo+2