(Bloomberg) The International Energy Agency has agreed with other major economies to engage in a coordinated release of oil stockpiles following price rises above $100 a barrel.
The IEA agreed to deploy 60 million barrels from its stockpiles across the world, with half of the amount coming from the US Strategic Petroleum Reserve.
The coordinated release of oil stockpiles happens amid escalating tensions in Ukraine, with the energy organization fearing the rising prices of the commodity.
The commodity release will be second by the US as the country continues to struggle with the soaring fuel costs.
The move by IEA comes even as the OPEC+ disregarded calls by the US to release more oil to the market, with eyes now on the cartels’ Wednesday meeting amid Moscow tensions.
Crude prices hit $105 a barrel in London, the highest since 2014 amid concerns of disruptions in supplies from Russia as economic sanctions mount.
Analysts still say the impact of the expected release of the oil stockpiles is undermined by its limited scope. They warn that most of the barrels will be offered on a condition of a return on a later date.
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