IEA says substantial emergency oil stocks remain after record release

The International Energy Agency’s (IEA) member countries still hold substantial emergency oil stocks in reserve despite the largest coordinated release of strategic reserves on record, it said on Tuesday.

The agency said that about 290 million barrels of oil have been released by member countries since the release was announced on March 11, and that they collectively hold more than 1 billion barrels of emergency oil stocks in reserve.

The IEA agreed to release a record 400 million barrels of oil from strategic stockpiles after a surge in global crude prices triggered by the U.S.-Israeli war with Iran.

Oil prices edged higher on Tuesday as markets weighed reports of mediation efforts against fresh U.S.-Iran attacks, along with threats of a naval blockade of Saudi Arabia by Yemen’s Houthis.

“We estimate that Gulf exports are below their late-June highs but are still considerably higher than the levels seen between early March and mid-June,” said IEA Executive Director Fatih Birol.

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On the demand front, top consumer China’s June crude imports slumped by 41.3% to their lowest in almost a decade.