IEA's collective oil stock release remains active, no plans for extra release: Sadamori

The International Energy Agency's collective oil stock release introduced in March and April remains active to date, with the agency having "no current plans for any additional coordinated stock release", Keisuke Sadamori, IEA's director of energy markets and security, told S&P Global Commodity Insights.

"The vast majority of the oil pledged for release in both the March and April collective actions has effectively been made available to the market as of end-October 2022," Sadamori told S&P Global in the early hours of Oct. 27 Japan time. "However, both collective actions remain active."

"This means that the IEA governing board has advised member countries to refrain from replenishing emergency stocks at this time, while taking in to account national circumstances, and the obligation on IEA member countries to maintain stocks at a level equivalent to 90 days of net imports remains temporarily suspended," Sadamori added.

The IEA governing board, supported by its secretariat, will continue to regularly reevaluate its advice to member countries as the situation in global oil markets evolves, he said.

"The IEA secretariat is constantly monitoring developments in global oil markets, and provides regular analysis to member countries," Sadamori said. "While there are no current plans for any additional coordinated stock release, the IEA stands ready to act, if required."

Collective action

IEA member countries agreed in March and April to release emergency oil stocks as part of two coordinated collective actions in response to tightening oil market conditions following Russia's invasion of Ukraine.

In March, IEA member countries committed to release 62.7 million barrels of oil as part of its collective action, followed by an additional release of 120 million barrels in its April collective action, bringing the total collective release volumes to 182.7 million barrels.

The IEA said in April that its member countries will release its emergency oil stocks over a six months period under its collective action.

"Despite the significant release of emergency oil stocks in IEA countries since March 2022, total stockholding levels across the IEA remain high," Sadamori said.

As of end-August 2022, total stocks in IEA countries amounted to 4.023 billion barrels, including 1.288 billion barrels of public stocks and 2.736 billion barrels of industry stocks, he added.