IEA to release 100 million more barrels of oil to ease fuel prices

Member states of the International Energy Agency (IEA) have backed a decision to bring an additional roughly 100 million barrels of oil to market from emergency reserves in order to lower fuel prices.

IEA Executive Director Fatih Birol said member governments have reiterated their commitment to fulfilling the collective decision made in March.

Fuel prices have been rising amid supply disruptions following the closure of the Strait of Hormuz.

Member states had agreed in March to release about 400 million barrels of oil to address the disruption that arose after the US and Israel's war against Iran. According to Birol, about 325 million barrels of that have reached the market so far.

He said releasing the remaining committed but undelivered oil would make an additional roughly 100 million barrels available. He also noted that some member states had already sent more oil to the market than they had initially pledged.

According to Birol, member states still hold about 1.1 billion barrels of publicly owned oil and more than 200 million barrels of diesel in reserve.

The decision comes after US President Donald Trump warned that the US would halt diesel exports if G7 countries did not add more fuel to the market. Prior to that, G7 countries had agreed on Friday to bring about 100 million barrels of oil to market.