The government releases 11.5 million barrels of oil to curb rising prices due to the war

The government has approved the release of 11.5 million barrels from its strategic oil reserves to address the price increases caused by the war in the Middle East. This amount is equivalent to 12.5 days of national consumption within Spain ‘s 92-day reserves and represents 2.9% of the 400 million barrels that the International Energy Agency (IEA) has decided to release.

The third vice president and minister for Ecological Transition and the Demographic Challenge, Sara Aagesen, explained in the press conference after the Council of Ministers that of those 11.5 million barrels, two million correspond to gasoline, nine million to middle distillates —such as automotive diesel and aviation kerosene— and 297,000 barrels to fuel oils.

FIRST PHASE OF RELEASE AND DEADLINES

In the first phase, 3.75 million barrels will be released , equivalent to four days of consumption , over a 15-day period following the publication of the agreement. The entire plan, both nationally and internationally, will be implemented over 90 days until the release of 11.5 million barrels in Spain and 400 million barrels globally is complete.

The petroleum products that are released —with the expectation that diesel will have a greater weight due to demand— will be put on the market at market prices for consumption.

INTERNATIONAL RESPONSE AND MARKET CONTEXT

The measure is part of the agreement reached last week by the 32 member countries of the IEA, which approved the fifth collective action to release reserves since the organization’s creation. The decision responds to the drop in tanker traffic through the Strait of Hormuz , which has fallen to less than 10% of pre-conflict levels, representing 25% of global maritime trade.

The Energy Agency is confident that this joint action will help reduce volatility in international markets and contain price pressures, preventing panic reactions. Spain is participating in this Coordinated Response Plan, the largest launched by the IEA, with a maximum of 11.553 million barrels , 2.9% of the total.

The remainder of the release may be carried out in one or more additional phases , depending on how events unfold. This may utilize both industry reserves and those managed by Cores, which will oversee the entire process.

Furthermore, Aagesen has confirmed that new measures will be approved this Friday at an extraordinary Council of Ministers meeting to mitigate the economic impact of the war, which will include both short-term and structural actions.