EU: No reason to release strategic oil reserves, focusing on diesel and aviation fuel supply.

According to informed sources, the European Union informed its member states this week that there is currently no reason to release strategic oil reserves, despite ongoing tensions in the Strait of Hormuz due to the Iran conflict. The European Commission, the EU's executive body, reportedly informed a specially convened energy alliance working group on Thursday that member states hold strategic oil reserves equivalent to 90 days of consumption - as required by the International Energy Agency - and there is currently no need to start releasing these reserves. The report states that special attention is being paid to the supply of diesel and aviation fuel, as these areas are highly dependent on the Middle East. EU Commission officials reportedly said that 40% of diesel and aviation fuel imports for the group come from Gulf countries. In contrast, about 8% of the region's total oil imports and 9% of its total liquefied natural gas imports come from Qatar. With the possibility of Europe facing another potential energy crisis just a few years after the cut-off of Russian pipeline gas supplies, the continent is once again at risk. While the EU is not dependent on oil and gas from the Middle East, it is highly dependent on the global fossil fuel market, especially natural gas, which is almost depleted and prices are on track for their largest weekly increase since 2022. The International Energy Agency (IEA) is prepared to help stabilize the global oil market after the Iran conflict. According to a document from the IEA earlier this week, member countries have over one billion barrels of emergency reserves. The document did not mention any specific plans to release reserves, stating that the current market supply is sufficient. In the energy alliance working group meeting, the European Commission also mentioned that liquefied natural gas shipments scheduled for March have passed through the Strait of Hormuz, indicating that a supply disruption is unlikely in the short term. Ship tracking data shows very few vessels passing through the Strait of Hormuz, with only one product tanker entering the Persian Gulf on Tuesday night and one bulk carrier leaving on Wednesday night. The EU's oil coordination group determined earlier in the week that there is no need for coordinated measures in the market at present. The group is expected to meet again next week, according to informed sources.