IEA Member Nations Agree to Swift Release of 20 Million Barrels of Diesel

Member countries of the International Energy Agency (IEA) have agreed to promptly release more than 20 million barrels of diesel to stabilize soaring diesel prices, the IEA announced on the 15th (local time).

According to the IEA announcement, the IEA Governing Board, consisting of 32 member countries, made the decision during a meeting held that day.

Following the meeting, the board said in a statement, "The board reaffirmed its commitment to continuing the implementation of the joint response agreed upon in March 2026 in response to the Strait of Hormuz crisis."

It added, "With concrete plans already in place, we have agreed to accelerate the release of remaining volumes, including the swift release of over 20 million barrels of diesel as quickly as possible."

The board also noted that it encouraged member countries with oil production and refining capabilities to increase the supply of crude oil and refined petroleum products, particularly diesel.

Previously, the IEA announced that it would release more than 400 million barrels of crude oil and petroleum products to cope with energy supply shortages following the blockade of the Strait of Hormuz after the outbreak of the U.S.-Iran war.

The board estimated the volume released so far at approximately 330 million barrels, with the remaining volume to be released at about 100 million barrels.

However, the energy market expressed disappointment that the board's announcement did not contain news of additional release volumes.

Abhishek Kumar, an analyst at Sparta Commodities, told Reuters, "The IEA's announcement is a step in the right direction, but fell short of market expectations in terms of details," assessing that "the over 20 million barrels of diesel scheduled for release appear to be an acceleration of previously committed volumes rather than new supplies."

According to the IEA's monthly oil market report released the previous day, global diesel exports last month decreased by 700,000 barrels per day compared to September of last year.

Exports dropped by 1.3 million barrels per day in Russia and the Middle East alone, both regions currently at war.

U.S. President Donald Trump, who urgently needs price stability ahead of the midterm elections next month, recently announced that he had agreed with Russian President Vladimir Putin to temporarily waive sanctions to supply Russian diesel to the U.S. and global markets.

President Trump stated that Russia would initially supply 300,000 tons, or about 2.25 million barrels, of diesel, followed by about 3.75 million barrels in November and an additional 7.5 million barrels thereafter.

Experts evaluate that while the additional release of Russian crude into the market could help lower prices somewhat, it will not be enough to fill the diesel supply shortage unless navigation through the Strait of Hormuz is liberalized.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.