IEA could release more oil stocks

The International Energy Agency's ‌member countries could release more oil into the market from strategic stockpiles "as and if needed" after they agreed the largest-ever reserves release last week to offset shortages and a spike in prices, IEA executive director Fatih Birol said

"Despite this huge release, we still have a ​lot of stocks left," Birol said, referring to the roughly 20% drawdown under last week's ​agreement. Reserves still contain about 1.4 billion barrels, he said.

"This quick action by the IEA had a calming impact on markets. Oil prices today are significantly lower than they were one week ago," Birol said.

According to him, even though the stock release can provide a buffer for now, it is not a lasting solution.

"The single ​most important thing for a return to stable flows of oil and gas is ​the resumption ⁠of transit through the Strait of Hormuz," Birol said.

He also warned that even if the Strait were to reopen tomorrow, it would still take time for global energy trade to recover.

The comments from Fatih Birol come as ​the oil price remains above $100 a barrel, having surged as a result of the U.S. and Israeli war ​on Iran.

The conflict has shut the Strait of Hormuz, through which around a fifth of global ⁠oil is usually shipped daily, causing the world's largest-ever supply shock.