2026-03-12 09:08:00
- The move is aimed to stabilise markets
Once again, it’s not so much about the big figure as touted in the headline. As mentioned yesterday:
“As mentioned before, it could still take weeks for this oil supply to make its way to refineries and that is what markets need to consider..
..there are going to be many questions to factor in.
- How many barrels is the IEA going to draw down from its reserves in the first few weeks?
- How quickly can these barrels make its way to transport and be shipped to where it needs to go?
- What is the mix in crude quality that will be involved with the release?
- Who is going to handle all the logistics and make sure that these barrels can reach refineries in a timely manner?
- Are refineries able to handle the sudden surge when they all come at one go?
It’s not as simple as saying that the 300 million to 400 million barrels will cover everything. There’s a lot more to it and that will be what really influences the outlook for the oil market as the Middle East conflict stretches on for longer.”
At around the same time, the IEA also released its latest monthly report noting that the Middle East conflict is creating “the largest supply disruption in the history of the global oil market”. Adding that Gulf countries have cut their total oil production by at least 10 million barrels per day, with losses set to increase without any restart of shipping flows.
In looking out for things to return to normal, the IEA notes that it will take “weeks and in some cases months for upstream production to return to pre-crisis levels”.
