This opinion piece was published by the International Energy Agency on Feb. 22, 2022.
The IEA is monitoring with growing concern Russia’s recent statements and actions, and their potential implications for energy markets. The Agency is continuing its consultations with its Member Countries and key partners on appropriate measures to ensure energy security.
While the specific impact on world oil markets is yet to be determined, IEA Member Countries stand ready to act collectively to ensure that global oil markets are adequately supplied.
Most immediately at risk are the roughly 250 kb/d of Russian oil exports transiting Ukraine via the southern branch of the Druzhba pipeline to supply Hungary, Slovakia and the Czech Republic. These countries have ample government held emergency stocks to draw upon in case of need. The IEA will continue to monitor the market closely and assess the need for activating its emergency oil system.
Total oil stocks in IEA Member Countries amounted to close to 4.16 billion barrels as of end-December 2021, of which 1.5 billion barrels are held by governments as emergency reserves. IEA net-oil-importing countries have an obligation to hold emergency oil stocks equivalent to at least 90 days of their net oil imports. For more information on IEA stockholding requirements and emergency response measures, please click here.
The IEA is also closely monitoring the developments in natural gas markets and will continue its consultations with Member Countries, Association countries and key producing countries to facilitate market stability.