New Zealand will release 483,000 barrels from its emergency oil stocks in response to the ongoing global impact on energy security after Russia’s invasion of Ukraine.
It’s part of additional action by the 31 member countries of the International Energy Agency (IEA).
IEA agreed to take collective action to release an additional 120 million barrels of global emergency oil stocks to help offset the loss of Russian oil exports after sanctions were imposed on Russia following the invasion.
Energy and resources minister Dr Megan Woods says New Zealand has committed slightly more than the amount requested by the IEA.
“Our release is made up of around 184,000 barrels of crude oil held in Spain and close to 299,000 barrels of diesel held in the United Kingdom.
“This contribution follows on from our release of 369,000 barrels of crude oil last month as part of the initial collective action to release 62.7 million barrels held by IEA members,” Woods says.
New Zealand’s membership of the IEA requires it to hold stocks equivalent to at least 90 days of net oil and imports. New Zealand buys emergency reserve stocks that are held offshore as part of this obligation and help to manage potential disruptions in the oil market.
“We released slightly more than our allocated share in response to the last collective action and we have done so again as we play out part to help stabilise world energy markets.
“There has been a great deal of volatility in global oil markets since the invasion and this further action, coupled with the United States’ move to release 180 million barrels of oil over the next six months, will help to provide some certainty to the market,” Woods says.
