IEA members back faster release of 100 million barrels of Oil stocks
- IEA members support accelerating the release of Oil stocks pledged under the collective action agreed in March.
- Around 100 million barrels could still reach the market if all pledged but unreleased stocks are fully deployed.
- US gasoline inventories are tightening in key regions, while domestic crude production reaches another record high.
Governments belonging to the International Energy Agency (IEA) support accelerating the release of Oil stocks announced under the collective action agreed in March, according to a statement from the organization cited by Reuters on Wednesday.
The IEA says that a full release of all stocks pledged in March but not yet deployed would bring approximately 100 million additional barrels to the market. Members support completing these releases as soon as possible.
IEA members also back prioritizing the release of diesel stocks. The organization says its members still hold the equivalent of around 1.1 billion barrels in reserves, including more than 200 million barrels of diesel. IEA members agree to continue assessing the situation and will review it again at the organization's next scheduled Governing Board meeting next week.
Meanwhile, the latest United States (US) inventory data point to tight conditions in some parts of the fuel market. The Energy Information Administration (EIA) announced on Wednesday that gasoline stocks in the US Midwest fell to a record low in the latest week, while inventories on the US Gulf Coast declined to their lowest level since September 2017.
The crude Oil supply picture appears more comfortable. US crude Oil production rose to a record high for the second consecutive week, according to the EIA. US crude imports from Nigeria also climbed to their highest level since June 2025.
Market reaction
West Texas Intermediate (WTI) US Oil shows little reaction to the announcements, with the crude Oil down 0.30% on Wednesday to trade around $88.95 at the time of writing.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
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