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Western countries will dump more barrels of emergency oil

The West is taking more advantage of its emergency oil reserves to help get rid of Russian crude oil. The International Energy Agency announced on Wednesday that it will supply the oil market with an additional 60 million barrels of crude oil from its emergency reserves. The Paris-based IEA, which oversees the energy supply of the world’s major developed economies, said details would be given. The news was enough to bring oil prices down 2.5%. U.S. oil fell below $ 100 a barrel, and Brent crude, the world benchmark, fell to $ 104 a barrel. The 60 million barrels will surpass the record of 180 million barrels. its Strategic Oil Reserve. The United States plans to launch 1 million SPR barrels a day over the next six months. It is unclear whether the IEA plan will coincide with that time period. Still, it will take time for that additional supply to hit the market, and taxpayer countries will have to look for buyers for their oil. Over the next six months, the release of 240 million barrels of reserved oil would result in an average of approximately 1.3 million barrels per day. The IEA said Russia could be forced to cut production by 3 million barrels a day as of this month, as it struggles to find buyers after the country invades Ukraine. If this happens, the release of emergency oil would account for about 43% of that lost production. Russia supplies about 40% of the European Union’s natural gas imports, and about 27% and 46% of its imported oil and coal, respectively. The United States and the United Kingdom have already banned imports of Russian oil, and a broader de facto embargo has been tightened as banks, traders, shippers and insurance companies try to avoid breaching financial sanctions. Earlier this month, EU leaders said the bloc could not yet join the United States in banning Russian oil because of the impact it would have on homes and industries that are already facing historic high prices. Instead, they said they would work towards a 2027 deadline to end the dependence on the Russian energy bloc. Duplicating. The IEA first announced on Friday that it would release additional oil from its emergency reserves, but did not say how much it would add. the market. The latest steps mark only the fifth time in the history of the agency that coordinates the release of emergency stocks. In a statement on Friday, the IEA said that the energy ministers of its 31 member countries “reiterate their concern about the energy security impacts of flagrant actions.” Russia and expressed support for sanctions imposed by the international community in response. “IEA members include the United States, the United Kingdom, Japan and Australia.” “IA is the world’s largest oil producer and largest exporter. Tuesday’s announcement comes after a historically important IEA launch. In early March, the IEA announced the coordinated release. 60 million barrels of member countries’ emergency reserves, including 30 million from the U.S. Strategic Oil Reserve The U.S. presidential coordinator is working “24 hours a day” to make sure pressure on Vladimir Putin continues to rise. but not all costs can be mitigated. ” President Biden was very clear that when you are in a war like this started by Putin and Russia. , there will be costs. “We can’t mitigate all costs, but what we’re doing is working together as an international community to do everything we can to mitigate it,” Hochstein told CNN’s Becky Anderson in an interview. Ukraine said Russia did not need to enact the same package of sanctions because of “different circumstances” in reference to Europe’s heavy dependence on Russian gas.

The West is taking more advantage of its emergency oil reserves to help get rid of Russian crude oil.

The International Energy Agency announced on Wednesday that it will supply the oil market with an additional 60 million barrels of crude oil from its emergency reserves. The Paris-based IEA, which oversees the energy supply of the world’s major developed economies, said details would be provided.

The news was enough to bring oil prices down 2.5%. U.S. oil fell below $ 100 a barrel and Brent crude, the world benchmark, fell to $ 104 a barrel.

The 60 million barrels will add to the record 180 million barrels of oil President Joe Biden announced on Thursday that the United States would release from its Strategic Oil Reserve. The United States plans to launch 1 million SPR barrels a day over the next six months. It is unclear whether the IEA plan will coincide with that deadline.

Still, it will take time to reach the market and taxpayer countries will have to look for buyers for their oil. Over the next six months, the release of 240 million barrels of reserved oil would produce an average of approximately 1.3 million barrels per day.

The IEA said Russia could be forced to cut production by 3 million barrels a day as of this month, as it struggles to find buyers after the country invades Ukraine. If this happens, the release of emergency oil would account for about 43% of that lost production.

Russia supplies about 40% of the European Union’s natural gas imports, and about 27% and 46% of its imported oil and coal, respectively.

The United States and the United Kingdom have already banned imports of Russian oil, and a broader de facto embargo has been tightened as banks, traders, shippers and insurance companies try to avoid breaching financial sanctions. Earlier this month, EU leaders said the bloc could not yet join the United States in banning Russian oil because of the impact it would have on homes and industries that are already facing historic high prices. Instead, they said they would work towards a 2027 deadline to end the dependence on the Russian energy bloc.

Folding

The IEA first announced on Friday that it would release additional oil from its emergency reserves, but did not say how much it would add to the market. The latest steps mark only the fifth time in the history of the agency that coordinates the release of emergency stocks.

In a statement on Friday, the IEA said the energy ministers of its 31 member countries “reiterate their concern about the energy security impacts of Russia’s flagrant actions and have expressed support for sanctions imposed by the international community in response.”

IEA members include the United States, the United Kingdom, Japan, and Australia.

“The prospect of large-scale disruptions in Russian oil production threatens to create a global shock to oil supplies,” the IEA said in a statement, noting that Russia is currently the world’s third-largest oil producer and largest exporter.

Tuesday’s announcement comes after a major historic release from the IEA. In early March, the IEA announced the coordinated launch of 60 million barrels of member countries’ emergency reserves, including 30 million from the United States Strategic Oil Reserve.

The US presidential coordinator UU. for Global Energy Security, Amos Hochstein told CNN on Wednesday that the United States and Europe are working “24 hours a day” to make sure pressure continues to rise on Vladimir Putin, but that not all costs can be mitigated.

“President Biden was very clear that when you are in a war like this started by Putin and Russia, there will be costs. We cannot mitigate all costs, but what we are doing is working together as an international community to do everything we can to mitigate “He told CNN’s Becky Anderson in an interview.

Hochstein highlighted US-European unity in response to Russia’s invasion of Ukraine. But he said both sides did not need to enact the same package of sanctions because of “different circumstances”, alluding to Europe’s heavy dependence on Russian gas.

Western countries will dump more barrels of emergency oil Source link Western countries will dump more barrels of emergency oil

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