IEA says oil markets stabilizing after emergency stock release
Monday, March 16 2026 - 11:15 PM WIB
By Romel S. Gurky
The International Energy Agency (IEA) has begun releasing around 400 million barrels of emergency oil stocks, the largest coordinated stock release in its history, to stabilize global energy markets following a major supply disruption linked to conflict in the Middle East.
In a video statement from the agency’s headquarters in Paris on Monday, Fatih Birol said the war in the region has created the largest supply disruption in the history of the global oil market.
“The volume of oil supply now offline is already higher than the supply loss during the oil shock of 1973 and higher than any of the big disruptions we have witnessed since then,” Birol said.
The disruption is largely tied to the effective closure of the Strait of Hormuz, a critical choke point for global energy shipments.
IEA member countries agreed unanimously on March 11 to release oil from emergency reserves to offset the supply loss. The additional supply is already flowing to markets, particularly in Asia.
According to the agency, countries in the Asia Pacific region have committed to release more than 100 million barrels, with Europe contributing a similar amount. Countries in the Americas are releasing over 170 million barrels, while increased production is expected to add more than 20 million barrels.
Birol said the rapid action has helped calm markets, with oil prices now significantly lower than a week earlier.
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However, he cautioned that the stock release is only a temporary buffer and that the most critical factor for stabilizing global energy markets will be the resumption of energy flows through the Strait of Hormuz.
“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,” he said.
The disruption is already affecting economies worldwide, particularly energy importing countries in South and Southeast Asia. Emerging economies in the region are facing rising fuel costs and shortages, including limited supplies of liquefied petroleum gas used for cooking.
The agency said it still retains substantial emergency reserves even after the planned release. Once the program is completed, the drawdown will reduce total emergency oil stocks among IEA countries by about 20 percent, leaving more than 1.4 billion barrels remaining in strategic reserves.
Several non member countries including India, Colombia, Singapore, Thailand and Vietnam have also expressed support for the coordinated response.
The IEA said it will continue monitoring global energy markets and coordinate with governments worldwide as the situation evolves. Even if shipping routes reopen quickly, the agency expects it could take time for global energy trade flows to fully normalize.
Editing by Alexander Ginting