Spain will support an International Energy Agency plan to release oil
The Minister for Ecological Transition suggests that reserves could be provided for 12 days.
MadridIf the International Energy Agency (IEA) ultimately proposes a plan to release oil reserves for the war in the Middle East, Spain, as a member of this organization, will join, as confirmed by the Minister for Ecological Transition, Sara Aagesen, this Wednesday morning during a breakfast briefing. Aagesen, in fact, quantified the contribution that the State could make at about 12 days' worth of oil reserves. She also said that the State's current oil reserves cover demand for about 100 days.
The Spanish government's Energy Minister confirmed that the IEA has proposed the largest release of oil reserves in its history, as reported Tuesday night by the R news agency.euthersThe pressure of the conflict in the Middle East is impacting both the supply and price of oil. It's important to note that the war in Iran and its ramifications have almost completely blocked the Strait of Hormuz, through which a fifth of the world's oil and gas passes. This move by the IEA would therefore provide a lifeline for both. Specifically, the international organization would propose releasing twice the number of barrels that were released from reserves during the war in Ukraine (at that time, 182 million barrels were released). The International Energy Agency's proposal would be "voluntary," Aagesen clarified, meaning countries could refuse to participate in the release, although she doesn't believe any country will. In any case, it must be approved unanimously, which the minister explained would happen in the coming hours. "On behalf of Spain, we will support the plan. We have always been supportive and we understand that in this way we will also help to reduce market tensions and allow other countries, where the tension goes beyond prices, to have a response in terms of supply," he said.
After closing at $87.60 per barrel on Tuesday, the price of Brent crude, the European benchmark, climbed back above $90 on Wednesday morning. However, it is still far from the $118 it reached on Monday, although it remains above the $72 mark it held before the attack on Iran.