IEA plans another oil release as global inventories fall

The International Energy Agency says it will release another 100 million barrels of diesel, gasoline and crude oil, after consulting with G7 countries.

The release is part of a 400-million-barrel plan announced in March in response to the squeeze on supplies through the Strait of Hormuz.

The United States has also been releasing oil from its Strategic Petroleum Reserve, which held 331.2 million barrels at the start of October, its lowest level since 1983.

That amount is approaching the 250-million-to-300-million-barrel range described as the reserve system’s operational minimum.

Global oil inventories have also fallen, with the IEA reporting a 95-million-barrel drop in August and a total decline of 507 million barrels since February.

Saudi Aramco chief executive Amin Nasser warned that the world’s supply cushion is thin and said replenishing drained stocks could take up to two years after the Strait of Hormuz reopens.

The IEA says member governments still hold about 1.1 billion barrels of emergency stocks and are prepared to release more if needed.