IEA backs faster release of 100 million barrels as fuel prices climb

The International Energy Agency (IEA) on Wednesday backed an accelerated release of about 100 million barrels of oil from emergency reserves, as Middle East tensions and disruptions to shipping through the Strait of Hormuz continue to push up energy prices.

IEA members agreed to complete the release of previously pledged stocks "as soon as possible" and to prioritize diesel where possible, citing tight supplies in the global diesel market.

The decision adds to a massive coordinated effort to stabilize oil markets.

About 325 million barrels have already been released under a March agreement, with some countries contributing more than initially pledged.

IEA members still hold about 1.1 billion barrels of publicly owned emergency oil stocks, including more than 200 million barrels of diesel.

The agency said it is prepared to release more if needed.

On March 11, the IEA's 32 members unanimously agreed to make 400 million barrels of oil available to the market – the largest coordinated release in the agency's history.

France is also taking steps to ease pressure on individuals and businesses.

Prime Minister Sebastien Lecornu said on Wednesday that France would release 10 million barrels of diesel from its strategic reserves.

The fuel will be supplied to distributors and could lower pump prices by around 12 to 18 euro cents per liter, he said.

The measure is expected to last three months, with Lecornu saying he would soon sign a decree to authorize the release.

He also called on state-owned utility EDF to maximize electricity generation to help prevent power prices from rising this winter.

French broadcaster TF1 reported on Tuesday that diesel was selling at an average of 2.35 euros ($2.63) per liter, while SP95-E10 gasoline, the country's most widely sold gasoline, averaged 2.14 euros ($2.40) per liter.

The pressure on energy markets could persist even if fighting in the Gulf region ends soon, according to International Monetary Fund Managing Director Kristalina Georgieva.