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Oil reached 106 US dollars on Tuesday, even after the International Energy Agency (IEA) decided to dip into its reserves to release 60 million barrels.
The decision of the international organization which brings together 31 countries comes for the first time since 2011 and it is only four times that the agency, created in 1974, has jointly decided to go to its own reserves to release oil on the market – it happened in 2011, 2005 and 1991. after the United States had already decided to release, in November, 50 million barrels of its reserves, which was then not followed by d other countries, especially European ones, because they did not consider it necessary.
in a report, the IEA explains that it took the decision “to send a strong and unified message to the world oil markets that there will be no disruption of supply due to the Russian invasion of Ukraine”. Half of these reserves will be released by the United States of America. The 47-year-old Parisian body has members, in addition to the United States, Japan and many European countries.
The IEA says it supports sanctions against Russia, but is concerned about the current market situation and price volatility. In addition, the executive director of the organization, Fatih Birol, quoted in the press release, applauding the decision, adds that “the situation in the energy markets is very serious and requires our full attention. The security of global supply is at risk, which puts the world economy at risk in this period of still fragile recovery”.
IEA members have reserves of 1.5 billion barrels, meaning they release 4% of what is on deposit, which equals two million barrels a day for 30 days.
Russia is the third largest oil producer after the United States and Saudi Arabia. In January this year, Russian production was 11.3 million barrels per day, while the United States had 17.6 million and the Saudis 12 million. Russia is even the first exporter of oil and the second of crude after Saudi Arabia. About 60% of oil exports go to Europe and 20% to China.
But after the announcement, Brent, traded in London and which serves as a benchmark in Portugal, reached the markets at 106 dollars a barrel and WTI in New York also reached this mark, the price having not been contained by the measure.
This Wednesday there will be a meeting of OPEC+ (a Saudi Arabia-led exporter cartel that has Russia as an ally), with reports that the organization will stick to its previous plan to start ramping up gradually. the production. The situation in Ukraine should therefore not change the plans, advances to Reuters. OPEC+ decided to cut production in 2020 due to the pandemic crisis which abruptly reduced demand.
On February 2, at its last meeting, OPEC+ agreed to increase debt by 400,000 barrels per day from March, while maintaining a reduction of 2.6 million barrels per day. On Tuesday, Vladimir Putin and the Prince of Abu Dhabi, Mohammed bin Zayed al-Nahyan, had a telephone conversation during which they will have discussed, according to Reuters, the continuation of coordination on the energy market.