A record release of strategic oil reserves has been agreed in an effort to help offset supply disruptions since the Middle East conflict began.
The International Energy Agency (IEA) said the UK government would coordinate the flow of 400 million barrels into the market with a contribution of 13.5 million barrels.
The body has barrels at its disposal after talks with ministers from the G7 group of advanced industrialized nations, including the UK.
However, the move made little difference in oil prices.
Brent crude, the international benchmark, fell on news that it was considering support above $118 a barrel from this week’s highs.
It traded at $92 a barrel shortly before the details were confirmed on Wednesday afternoon and fell to $90.63 after the announcement.
It is not clear when the emergency stocks will come on stream, with the IEA saying they will be made available to the market “in a timeframe appropriate to the national circumstances of each member state”.
Why was it announced?
The Gulf region normally exports about 15 million barrels of oil a day but production and deliveries have been disrupted by Iranian attacks on energy infrastructure since the US-Israeli military offensive against the regime in Tehran began last month.
The threat to shipping has effectively closed the narrow Strait of Hormuz off the Iranian coast, which normally handles a fifth of the world’s energy shipments, and export volumes of crude and refined products are currently less than 10% of pre-conflict levels.
How much do members have?
The 32 IEA members, of which the UK is one, have emergency stocks of 1.2 billion barrels, with another 600 million barrels of industry stock.
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