Countries agree to record release of emergency oil reserves as prices surge

44 minutes agoMitchell LabiakBusiness reporterGetty ImagesDozens of countries have agreed to release a record amount of oil from their emergency reserves to alleviate supply shortages and try and limit soaring prices.The 32 member states of the International Energy Agency (IEA) will release 400 million barrels to combat what the IEA said were challenges "unprecedented in scale".The Iran war has caused oil exports through the Strait of Hormuz — which carries a fifth of global oil supplies — to virtually stop and production in the region to slump.The oil price is over 25% higher since the conflict started and experts say the IEA's move would only be a short-term solution.The release is more than double the previous record amount released by IEA members following Russia's full-scale invasion of Ukraine in early 2022.The IEA's member and associate countries represent two thirds of global energy production and 80% of consumption.All IEA member countries are required to keep 90 days' worth of their nation's oil use in reserve in case of global disruption.Collectively, the members hold over 1.2 billion barrels in emergency stockpiles, with a further 600 million barrels of industry stocks held under government obligation.The oil itself is not in a single place. For example, producers like Shell and BP keep stocks at terminals and refineries around the UK and can earmark stocks held elsewhere as counting towards their reserves.When it is released, it does not mean a sudden flood of new oil starts moving.Instead, producers will make more available in the market for refineries to order, though energy analysts have told the BBC that there is a shortage of refining capacity.The other issue with releasing reserves is that it is not something you can do again."Once you release them, they don't exist," Nick Butler, former head of strategy at BP, told the BBC.