IEA Member Countries to release oil reserves in response to oil market changes
In response to the recent changes in oil markets, the Member Countries of the International Energy Agency (IEA) have agreed to take collective action, including the decision to release part of their oil reserves to the market. This was agreed at an extraordinary IEA ministerial meeting held yesterday to discuss coordinated action to stabilise energy prices, which are rising on the global market due to the war in Ukraine.
This is the fourth time in the history of the IEA, which was created in 1974, that a decision was taken to stabilise prices, and Lithuania actively supported it.
“Lithuania is very concerned about the circumstances on global energy markets, especially the rapidly increasing oil prices. The situation on the global oil market related to the war in Ukraine demands that we be united and take immediate action, so Lithuania supports the proposal and will contribute to the decision on the joint release of oil reserves to the market,” said Minister of Energy Dainius Kreivys, adding, “The current situation in Ukraine has once again clearly confirmed the need to reduce all of our energy dependence on Russia. By paying for Russia’s natural gas and oil, we are financing Russia’s brutal war against Ukraine and its people. We must stop this, because one day we may be faced with the same war.”
The additional supply injection – some 60 million barrels of oil in total – is meant to help stabilise the rise in oil prices. The countries are expected to contribute amounts commensurate with the quantities of oil and oil products consumed. Exactly how many tonnes of oil Lithuania will have to contribute from its reserves will not be announced.
At the meeting, Minister Kreivys also emphasised that Lithuania is actively cooperating with its EU partners and the United States to ensure the stability of the energy system and uninterrupted energy supply, while also looking for alternative reliable energy sources and transportation routes.
The International Energy Agency is the world’s leading organisation in the sector, advising Member States on energy policy-making and preparing for oil supply disruptions, and analysing and providing information on the international oil market and other energy sectors. The organisation unites the most advanced countries in the global energy sector and has 31 Member Countries, one of which is Lithuania