The International Energy Agency (IEA) approved the largest-ever release of emergency oil reserves, as governments seek to curb a surge in energy prices caused by war in the Middle East. The IEA said on Wednesday that its members would release 400 million barrels of oil.
Crude prices surged to nearly $120 a barrel in London earlier this week as oil shipments in the Persian Gulf's crucial Strait of Hormuz largely ground to a halt, although futures have since retreated - in part on expectations that governments will tap into oil reserves.
The IEA, which coordinates reserve releases among OECD members, said the 32 OECD members hold more than 1.2 billion barrels of public emergency reserves, including the largest buffer - the U.S. Strategic Petroleum Reserve. In addition, there are 600 million barrels of industry reserves required by the government.