The agreement, which is the second oil release confirmed in a month, was reached on Friday, the details of which will be made public this week.
It follows a pledge to release a total of 61.7 billion barrels of oil by the member countries last month and US President Joe Biden’s announcement last week to release an “unprecedented and largest ever” amount of oil from the country’s emergency strategic reserve.
IEA members hold emergency stockpiles of 1.5 billion barrels and the latest agreement will be the fifth time the IEA releases emergency stocks, following previous actions in 1991, 2005, 2011 and 1st March 2022.
Ministers from the IEA member countries noted the war in Ukraine continues to put significant strains on global oil markets, resulting in heightened price volatility.
The believe the prospect of large-scale disruptions to Russian oil production is threatening to create a “global oil supply shock”.
Russia is the world’s third largest oil producer and the largest exporter, exporting around five million barrels a day of crude oil, which represents around 12% of global trade while its 2.85 million barrels a day of petroleum products represent around 15% of global refined product trade.
Around 60% of Russia’s oil exports go to Europe and an additional 20% to China.
Governments and consumers have also been recommended to maintain and intensity conservation efforts and energy savings.