Crude oil prices traded higher on Wednesday morning after falling around 7% earlier in the session.
Prices recovered after reports suggested that the International Energy Agency (IEA) is considering a large release of oil from the strategic reserves of its member countries.
According to a report by The Wall Street Journal, the IEA has proposed the largest release of oil reserves in its history in an effort to ease global crude prices.
The proposed release would exceed the 182 million barrels of oil that IEA member countries released in 2022 during the Russia–Ukraine war, the report said.
IEA member countries currently hold more than 1.2 billion barrels of public emergency oil stocks, along with an additional 600 million barrels of industry stocks maintained under government obligations.
Emergency meeting
The IEA held a meeting late on Tuesday evening to assess the global energy supply situation and discuss whether strategic reserves should be tapped.
Ahead of the meeting, Fatih Birol, executive director of the IEA, said on social media platform X that the agency was evaluating market conditions.
“Given conditions in oil markets, I have convened an extraordinary meeting of IEA Member governments, which will take place later today to assess the current security of supply and market conditions to inform a subsequent decision on whether to make emergency stocks of IEA countries available to the market. As well as IEA Members, I am also in close contact about the situation with energy ministers from key energy producers and consumers around the world.”
India stance
Mint earlier reported that India is unlikely to participate in any coordinated global exercise to release oil from strategic reserves.
India imports nearly 90% of its crude oil requirement, making it highly vulnerable to global price fluctuations. According to government estimates, a sustained increase of $1 per barrel in crude prices can raise the country’s annual import bill by about ₹16,000 crore.
Officials have indicated that the priority remains ensuring adequate domestic supply rather than contributing to global stock releases.
Refinery deal
In another development, US President Donald Trump announced that America First Refining would set up a new refinery in the United States in partnership with Reliance Industries Ltd.
In a post on Truth Social, Trump said:
“America is returning to REAL ENERGY DOMINANCE! Today I am proud to announce that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas. THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY, A MASSIVE WIN for American Workers, Energy, and the GREAT People of South Texas! Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment.”
He added:
“It is because of our America First Agenda, streamlining Permits, and lowering Taxes, that have attracted Billions of Dollars in Deals coming back to our Nation. A new Refinery at the Port of Brownsville will fuel U.S. Markets, strengthen our National Security, boost American Energy production, deliver Billions of Dollars in Economic impact, and will be THE CLEANEST REFINERY IN THE WORLD.”
