RIYADH: The historic decision by the International Energy Agency to release 400 million barrels of oil from strategic reserve stockpiles, the largest such move in its history, is unlikely to provide significant relief to markets, analysts say.
The agency announced the measure on March 11 as tanker traffic through the Strait of Hormuz continued to be in a state of paralysis as the US-Israel conflict with Iran continues.
The markets immediate reaction to the much-trailed decision was lukewarm, although oil did stay below the $119-a-barrel price seen on March 9, the highest level since mid-2022.
At 1:20 p.m. GMT on March 12 – about 24 hours after the announcement – Brent crude was trading at $98.26 a barrel, a daily increase of $6.28, while West Texas Intermediate was up $5.84 to $93.09 a barrel.
Ipek Ozkardeskaya, senior analyst at Swissquote, said the IEA decision was at the top end of expectations, adding: “Some say that the size of the release actually increased worries that the war could last longer. Again, the math is simple: 400 million barrels would only be enough to meet the IEA’s oil demand for roughly 9-10 days.
