With crude oil prices crossing the USD 100 mark, the IEA may release another batch of strategic petroleum reserves if prices remain elevated, says analyst June Goh, citing ongoing geopolitical tensions and supply-side risks.
IEA Eyes Fresh SPR Release
Speaking to ANI earlier, Goh said the IEA had not yet exhausted the previously announced emergency release and suggested that sustained higher oil prices could prompt another coordinated intervention. The IEA released the first batch of emergency oil reserves following its historic 400-million-barrel collective action announcement on March 11, 2026.”At that point in time, they announced the 400 million barrels. We have not finished that allocation yet as well,” Goh said, referring to the IEA’s earlier announcement on releasing strategic petroleum reserves.She added that stronger crude prices could become the trigger for another coordinated release by member countries.”But I think with flat price getting stronger, it should be a trigger point for the second release of SPR, of which there is still a venture to be released,” Goh said.Her remarks assume greater significance as Brent crude has now moved above the USD 100 per barrel level, amid renewed supply concerns and heightened geopolitical risks.
Potential Contributors and Price Triggers
According to Goh, several countries within the IEA framework still have room to contribute additional strategic reserves if required.”I mean, Japan and Korea definitely has a lot more to spare. US still has, although… we heard that the caverns are getting a bit more dangerous on the SPR levels.” she said.Goh further indicated that the threshold for another coordinated release could be sustained prices above USD 95 per barrel.”Which I think should be the base case now if oil price keeps to be above the $95 per barrel number,” she noted.
Supply Constraints and Geopolitical Risks
Explaining why oil prices had remained supported despite earlier expectations of oversupply, Goh said the market had yet to fully account for the ongoing supply-side risks.”Everyone seems to have forgotten that 1 billion barrels of inventory is lost. The world still needs to recover, not all, but at least part of this. Strategy Petroleum Reserves, IEA has announced 400 million barrels to be released. I think the actual count now is probably about to 200 million barrels that’s actually released to the market, that also has to be refilled,” she said.She also warned that disruptions to critical shipping routes could further tighten crude supplies.”And now with two potential places, Strait of Hormuz and the Bout Armandet both facing closure, you will get even more difficulties on the crude production side. Supply therefore remains curtailed… So a very long story short, I think we haven’t priced this in entirely yet,” Goh noted.Her comments come at a time when oil markets are closely monitoring geopolitical developments and the possibility of coordinated action by the IEA should prices remain elevated above recent thresholds.At the time of reporting, Brent crude was trading at USD 96.78 per barrel.(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)