Government to Release Additional 7.23 Million Barrels of Strategic Oil Reserves

[Image source=Yonhap News]

The government will release an additional 7.23 million barrels of strategic oil reserves through international cooperation with the International Energy Agency (IEA) to fully respond to the high oil price situation related to the Russia-Ukraine crisis.

According to the Ministry of Trade, Industry and Energy on the 8th, the government decided in consultation with the IEA to release an additional 7.23 million barrels following the 4.42 million barrels released in early March.

Earlier, at the IEA ministerial board meeting held on the 1st, the chair country, the United States, proposed an additional release of 120 million barrels after the release of 60 million barrels of strategic reserves failed to improve the oil supply and demand situation.

At this meeting, Moon Seung-wook, Minister of Trade, Industry and Energy, who attended as Korea’s representative, expressed Korea’s intention to actively participate in the additional joint release of strategic reserves to contribute to stabilizing the global oil market. Representatives of 31 countries also expressed support for the IEA’s additional measures, and a final agreement was reached to release an additional 120 million barrels of strategic reserves.

After future working-level consultations between the IEA Secretariat and member countries, it was decided to release a total of 120 million barrels over six months.

Korea will release a total of 7.23 million barrels, the third largest amount after the United States and Japan. Korea’s release volume is the third largest following the United States and Japan (15 million barrels). The government’s total volume reaches 14.82 million barrels, including the joint release of 3.17 million barrels with allies such as the United States in December last year and the 4.42 million barrels released earlier this month.

Through this largest-ever release, the government plans to fully respond to the high oil price situation caused by the prolonged Russia-Ukraine crisis, minimizing the burden on the national economy. The government stated that even with the additional release, it can maintain strategic reserves equivalent to more than 90 days, as recommended by the IEA.

Considering the recent diesel shortage in Europe, which has sustained strong international prices, the government added that it plans to release 600,000 barrels of diesel in addition to crude oil to contribute partially to stabilizing diesel supply and demand.

This content was produced with the assistance of AI translation services.