The International Energy Agency, of which Denmark is a member, has asked its member countries to release a total of 400 million barrels of oil from the countries' oil reserves. This was confirmed by Germany's Economy Minister, Katherina Reiche, to the German news agency dpa on Wednesday.
According to the minister, this is the largest amount of oil the agency has ever asked to be released - and far more than the 182 million barrels that were released at the start of the war in Ukraine.
According to Reuters, the Paris-based agency will publish its recommendation on Wednesday at 2 p.m. Danish time.
The last time the IEA decided to release parts of the reserve was in 2022, after Russia had invaded Ukraine. This caused energy prices to rise sharply, and oil reserves were released to keep prices down.
This time the release is to replace some of the oil that cannot get out through the Strait of Hormuz in the current situation.
This is explained by Jens Nærvig Pedersen, a commodities analyst at Danske Bank.
- The stocks are not infinitely large, but it can buy you some time while you work to end the conflict in the Middle East, he says.
In total, the IEA has around 1.2 billion barrels of oil in reserve. In addition, there are around 600 million barrels that the industry has at its disposal. This is reported by The Guardian.
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