🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

IEA says it will draw up plan to cut oil usage as prices surge

Published 03/09/2022, 03:52 AM
Updated 03/09/2022, 04:51 AM
© Reuters. FILE PHOTO: An energy installation on a property leased to Devon Energy Production Company by the Catholic Archdiocese of Oklahoma City is seen near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford

PARIS (Reuters) -The International Energy Agency (IEA) could release more oil from stocks to ease surging fuel prices and will draw up an action plan to swiftly reduce oil usage, the head of the agency said on Wednesday.

Oil prices rocketed higher after Russia, the world's second-largest crude exporter, invaded Ukraine and the West toughened sanctions on Moscow, stoking fears of supply disruptions to an already tight market.

"Next week, as we did for gas, we are coming up with a 10-point action plan how to reduce oil in a hurry," Fatih Birol told an energy conference in Paris.

"In oil markets, the most difficult months are the summer months, the so-called 'driving season', when the demand goes up, around June-July," said Birol, executive director of the Paris-based agency, which represents 31 mostly industrialised nations but not Russia.

The United States imposed an immediate ban on Russian oil and other energy imports on Tuesday.

© Reuters. FILE PHOTO: An energy installation on a property leased to Devon Energy Production Company by the Catholic Archdiocese of Oklahoma City is seen near Guthrie, Oklahoma September 15, 2015. REUTERS/Nick Oxford

Members of the IEA agreed last week to release 60 million barrels of oil reserves to compensate for supply disruptions following Russia's invasion.

Birol described the 60 million barrels as "an initial response", adding: "It is only 4% of our stocks. If there's a need, if our governments decide so, we can bring more oil to the markets, as one part of the response."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.