IEA announces extraction of 290 million barrels of oil reserve

Member  States are still holding large quantities of stored oil reserves for emergency, despite the implementation of the largest coordinated drawdown in the history of strategic stockpiles,  the International Energy Agency (IEA) said in an official statement issued on Tuesday (July 21st).

The data released by the IAEA confirmed that member states have withdrawn about 290 million barrels of oil since March 11.

Withdrawal Plan Details and Inventory Size

The IAEA revealed that the total oil reserves stored for emergency by the member states combined currently exceed one billion barrels.

Technical reports indicated that the IAEA had earlier agreed to withdraw record and unprecedented quantities amounting to 400 million barrels from strategic stockpiles, in order to contain the sharp rises in global crude prices resulting from the repercussions of the US-Israeli military confrontations against Iran.

According to media sources issued by the "Business Record" website specialized in oil, oil prices recorded a slight increase today, in conjunction with the anticipation of reports received about the reluctant mediations to stop the military escalation between Washington and Tehran, in addition to the fears caused by the threats of the Houthi movement in Yemen to impose a naval blockade on oil ports in Saudi Arabia.

Gulf exports and decline in Chinese demand

Fatih Birol, executive director of the International Energy Agency, said in press statements that technical estimates indicate that the Gulf countries' oil exports recorded a decline from their highest level achieved in late June. Birol added that the current export levels are still much higher than the rates recorded in the period from early March to mid-June.

According to the analytical data attached to the IAEA report, supply shortage concerns coincide with a state of fluctuation in Asian demand levels.

China's imports, the world's largest consumer of crude oil, fell 41.3 percent in June, reaching their lowest levels in nearly a decade, casting a shadow on international market balances in the current quarter.