IEA approve 'largest ever' release of 400m barrel emergency oil stock to reduce supply shortage

Dozens of countries don agree to release one record amount of oil from dia emergency reserves to reduce supply shortages and try and limit di rising prices.

Di 32 member states of di International Energy Agency (IEA) go release 400 million barrels to combat wetin di IEA say be challenges "unprecedented in scale".

Di Iran war don cause oil exports through di Strait of Hormuz — wey dey carry one fifth of global oil supplies — to virtually stop and production for di region to fall.

Di oil price dey ova 25% higher since di conflict start and experts say di IEA move go only be short-term solution.

Di release more dan double di previous record amount wey di IEA members release following Russia full-scale invasion of Ukraine for early 2022.

However, e go only amount to around three or four days' worth of global supply or roughly a fortnight worth of wetin go normally dey shipped out of di Strait of Hormuz.

Di IEA member and associate countries represent two thirds of global energy production and 80% of consumption.

All IEA member countries dey required to keep 90 days' worth of dia nation oil use in reserve in case of global disruption.

Collectively, di members dey hold ova 1.2 billion barrels in emergency stockpiles, wit a further 600 million barrels of industry stocks wey dem dey hold under govment obligation.

All di oil no dey for one place. For example, producers like Shell and BP dey keep stocks for terminals and refineries around di UK and fit earmark stocks dem hold elsewhere as counting towards dia reserves.

Wen dem release am, e no mean say sudden flood of new oil go begin dey flow.

Instead, producers go make am more available for market for refineries to fit order, though energy analysts tell BBC say, shortage of refining capacity dey.

Di oda issue wit releasing reserves na say no be something you fit do again.

"Once you release dem, dem no dey exist," Nick Butler, former head of strategy for BP, tell BBC.

Jorge Leon, one energy analyst for Rystad Energy, tok say di release "go help but e no go fully clear dat disruption".

"Everyone know say dem go release emergency reserves [...] but prices neva come down as much as you go expect," e add.

Meanwhile, di IEA executive director Fatih Birol say di decision go help di global gas market, wey e describe as "very challenging".

E say na "few options" dey available to deal wit a 20% slump in liquid natural gas (LNG) supplies wey di conflict cause.

'Unprecedented' situation lead to 'largest ever' release of 400m oil barrels - IEA

Announcing di "largest ever" release of 400m barrels of oil, di International Energy Agency (IEA) say dia 32 member countries bin vote unanimously in favour of di move.

"Di oil market challenges we dey face dey extraordinary in scale, therefore I happy say IEA Member countries don respond wit emergency collective action of unprecedented size," IEA executive director Fatih Birol tok.

IEA say dem go make available di emergency stocks to di market ova "timeframe wey dey appropriate to di national circumstances" of each member kontri.

Dis na di sixth time di IEA don approve a coordinated release of oil stocks, dem do am for 1991, 2005, 2011, and twice for 2022, dem tok.

Di agency add say dia members hold emergency stockpiles of more dan 1.2 billion barrels, wit a further 600 million barrels of industry stocks held under government obligation.

How fast di world dey use 400m barrels of oil?

Dis na ogbonge intervention from di IEA, but releasing one third of di stocks dia govments hold no be sometin dem fit repeat frequently.

Those 400m barrels of oil na roughly wetin di world dey use ova di course of four days, or wetin, in normal circumstances dey flow through di Strait of Hormuz in 20 days.

Na signal of intent from di 32 govments wey make up di IEA, say dem really wan reduce di shockwaves to di global economy.

Howeva, dem remain at di mercy of di markets, and e be like say energy traders no send di intervention.

Di IEA bin describe di "oil market challenges" as "unprecedented in scale", di kain language wey normally dey mean higher prices.

Di prices of oil bin fall small as dem make di announcement, but e quickly rise again becos e neva dey clear wen di fight go end and wen oil supplies, rather dan stocks, go once again flow freely.

'No single litre of oil' go pass through Strait of Hormuz - Iran

Meanwhile, Iran say dia policy for reciprocal strikes "don end", one tok-tok pesin for Tehran Khatam al-Anbiya military command headquarters tok for one statement.

Tehran policy now go be "strike upon strike," tok-tok pesin Ebrahim Zolfaqari tok.

Tehran no "go allow even a single litre of oil" to pass through di Strait of Hormuz to reach US, Israel plus dia partners, Zolfaqari add. "Any vessel or tanker bound to dem go be a legitimate target."

"Get ready for di oil barrel to be at $200 becos di oil price depend on di regional security wey you don destabilize," di tok-tok pesin add.