Australia will join 31 members of the International Energy Agency (IEA) and release 60 million barrels of oil from emergency stockpiles to stabilize the global energy market.
The global oil market is “showing signs of uncertainty” as Russia’s invasion of Ukraine continues, said Angus Taylor, Minister of Industry and Energy.
“We continue to work constructively with our partners to build confidence in the market and help stabilize prices,” he said in a statement.
“Australia will contribute to collective action and release its shares on behalf of the US strategic petroleum reserves,” he added.
“This key action (one of the four actions the IEA has taken so far) will help increase supply to the market and put downward pressure on prices both globally and domestically.”
Previous collective action took place in 1991, 2005 and 2011.
Currently, the IEA owns 1.5 billion barrels, and it is expected that the release of inventories will increase supply and lower gasoline prices.
The minister also said the international gas market was also affected.
“Australia can be trusted to continue to fulfill our contractual obligations and provide significant liquidity to the global gas market,” he said.
The move follows an emergency meeting held on March 1 in response to Russia’s invasion of Ukraine.
Given Europe’s and world’s dependence on Russia’s energy sources and Russia’s strong position as a major supplier of world energy, how military attacks can be leveraged in the event of a conflict. I made it clear.
In fact, during the last week, the current German Chancellor Olaf Scholz was forced to make drastic changes to the government’s energy policy, Announced on February 27 Germany will build two terminals to import LNG from other sources, begin construction of national gas stockpiles, and nuclear and coal-fired power plants, which were scheduled to be completely closed by 2030. Consider extending the operation of.
Russia is the world’s third largest producer and exporter of oil, sending 5 million barrels of crude oil per day. This represents about 12 percent of world trade. It also exports 2.85 million barrels of petroleum products per day, which is about 15 percent of international trade.
In addition, about 60% of Russia’s oil exports go to Europe and another 20% to China.