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IEA states agree on coordinated oil release but not volumes - Japan

Published 04/01/2022, 11:08 AM
Updated 04/01/2022, 11:16 AM
© Reuters. FILE PHOTO: Oil barrels are pictured at the site of Canadian group Vermilion Energy in Parentis-en-Born, France, October 13, 2017. REUTERS/Regis Duvignau

By Yuka Obayashi

Tokyo (Reuters) - U.S.-allied countries on Friday agreed to their second coordinated oil release in a month to calm markets roiled by Russia's invasion of Ukraine, Japan's industry ministry said, a day after Washington pledged its biggest oil release ever.

Member countries of the International Energy Agency, however, did not agree on volumes or timing for the release at their emergency meeting, said Hidechika Koizumi, director of International affairs division at Japan's Ministry of Economy, Trade and Industry.

"In light of the current situation ... the participants in the IEA meeting agreed on the additional release itself, but they could not agree on the total volume and the allocation of each country," Koizumi told reporters.

"The details will be discussed between the IEA secretariat and the member countries," he said, adding that details could be agreed "within the next week or so".

© Reuters. FILE PHOTO: An aerial view shows an oil factory of Idemitsu Kosan Co. in Ichihara, east of Tokyo, Japan November 12, 2021, in this photo taken by Kyodo. Mandatory credit Kyodo/via REUTERS

The 31-member IEA representing industrialised nations but not Russia last presided over the largest coordinated oil release in its history on March 1 of nearly 62 million barrels, about half of which was contributed by the United States.

To fill a shortfall caused by sanctions and buyer aversion to Russian oil, President Joe Biden on Thursday authorised a release from the U.S. Strategic Petroleum Reserve of 1 million barrels per day of crude for six months starting in May.

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