IEA keeps eye on Ukraine-Russia conflict

It is in consultation with member states to take action for energy security.

The International Energy Agency (IEA) is monitoring developments between Ukraine and Russia over its impact on energy markets.

The agency noted it has started consultations with member states as well as partners to take appropriate measures to ensure energy security.

“While the specific impact on world oil markets is yet to be determined, IEA Member Countries stand ready to act collectively to ensure that global oil markets are adequately supplied,” the IEA said in a statement.

The IEA noted roughly 250 thousand barrels per day of Russian oil exports transiting Ukraine through the southern branch of the Druzhba pipeline to supply Hungary, Slovakia and the Czech Republic is immediately at risk.

The said countries likely have emergency stocks to draw upon in case of need; but the IEA stands ready to activate its emergency oil system.

As of the end-2021, total oil stocks in IEA Member Countries amounted to close to 4.16 billion barrels. Of which, 1.5 billion barrels are held by governments as emergency reserves.

IEA net-oil-importing countries also have an obligation to hold emergency oil stocks of at least 90 days of their net oil imports.

“The IEA is also closely monitoring the developments in natural gas markets and will continue its consultations with Member Countries, Association countries and key producing countries to facilitate market stability,” the agency added.