THE END OF EXPENSIVE OIL OR A PATCH IN THE DESERT?
The IEA launches a "Missile" of 400 million barrels against the Hormuz crisis
Global Energy Emergency
The geopolitical board has forced an unprecedented move. The International Energy Agency (IEA) has activated the largest "panic button" in its history to try to contain a market that is bleeding due to the war with Iran.
The Record Figure: The 32 member countries of the IEA will release 400 million barrels, the largest collective intervention since the organization's founding. However, there is no fixed schedule; each nation will release its reserves according to its own logistics.
The Japan Factor: Tokyo has not wanted to wait. Prime Minister Sanae Takaichi announced that Japan is taking action ahead of the collective response and will release its national reserves this March 16, seeking to mitigate its extreme dependence on Middle Eastern crude.
The "Ghost" of Hormuz: Despite the historic volume of the release, analysts pour cold water: the IEA does not have the physical capacity to compensate for the 20 million barrels per day that are blocked in the Strait of Hormuz (20% of global supply).
Price Roller Coaster: Volatility is extreme. Following the outbreak of the conflict on February 28, Brent nearly hit $120, only to plummet below $90 in anticipation of these massive interventions.
