Oil Prices Hit $100: Countries Forced to Tap Strategic Reserves

Leaders of the G7 countries have tasked the International Energy Agency (IEA) with analyzing the situation in the global oil market. As a result, member states of the agency have decided to release 400 million barrels of oil from their emergency strategic reserves to stabilize the market.

This decision comes amid the closure of the Strait of Hormuz and a sharp rise in oil prices. Currently, Brent crude oil is trading at $100 per barrel.

So far, IEA member countries have not specified how or when the oil will be released to the market.

According to Reuters, 400 million barrels of oil is roughly equivalent to four days of global consumption or the amount that passes through the Strait of Hormuz in 20 days. However, experts note that emergency reserves cannot be used frequently.

The International Energy Agency is an autonomous international body operating under the Organization for Economic Cooperation and Development (OECD), with more than 30 member countries. Kazakhstan is not a member. The agency was established after the 1973–1974 oil crisis to ensure energy security worldwide.