IEA Considers Releasing Additional Oil Reserves, Energy Crisis Deemed Extremely Severe

JAKARTA, KOMPAS.com - The International Energy Agency (IEA) has indicated the possibility of releasing additional emergency oil reserves if the conflict in the Middle East continues to disrupt supplies and push up global energy prices.

IEA Executive Director Fatih Birol assessed the impact of the current energy crisis as far greater than previous supply disruptions, including the 1970s oil crisis.

Speaking at the National Press Club in Canberra, Australia, Birol emphasised that the global energy market is in a very serious condition due to damage to energy infrastructure in the Middle East.

According to him, even if a peace agreement is reached in the near future, the damage to energy facilities will cause prolonged supply and price pressures.

The IEA noted that at least 40 energy assets in the Middle East region have been damaged or destroyed due to the ongoing conflict.

This damage directly affects global energy production, processing, and distribution.

However, under current conditions, supply disruptions are estimated to reach around 11 million barrels per day.

“Up to today, we have lost 11 million barrels per day,” Birol stated.

This figure reflects significant pressure on the global energy market, particularly because the Middle East plays a crucial role in the world’s oil and gas supply chain.

That step became the largest release of oil reserves in the agency’s history.

According to Birol, the announcement of the reserve release temporarily suppressed fuel prices. However, the effect did not last long due to ongoing geopolitical uncertainties and supply disruptions.

He emphasised that releasing additional reserves remains an option if the situation worsens or energy prices surge again.