The International Energy Agency is expected to push for a record 400 million barrels of oil to be released to try to restrain soaring prices due to the Iran war.
The proposal would more than double the prior record from 2022 when the IEA’s member countries released 182 million barrels over a two-month stretch following Russia’s invasion of Ukraine, multiple sources told Reuters.
The IEA’s 32 member countries are expected to decide on the proposal on Wednesday ahead of a meeting of G7 leaders chaired by France.
Since the war broke out on Feb. 28, the price of oil has surged as much as 40%.
Oil prices rebounded Wednesday as markets sowed doubt on whether the IEA’s proposal could offset possible supply shocks from the ongoing conflict.
“The IEA secretariat is expected to propose scenarios, based on expected market impact, and outreach may extend to non-IEA members like China and India,” one source said of the looming proposal.
IEA members currently hold roughly 1.2 billion barrels in public stocks.
