{"id":"f-e550251d2f-9716e330-bb27-59d4-9307-d6424a459c1b","title":"Explained — Why oil prices are still rising despite IEA decision on emergency reserves","description":"Analysts believe that the IEA decision does not do much to address the other problems that the global economy would face. Most of the refined products, including Jet fuel, still flow through the Strait of Hormuz, where tanker traffic has all but halted, as acknowledged by Birol as well.","timestamp":1773288967,"category":"business","headline":"Explained — Why oil prices are still rising despite IEA decision on emergency reserves","modifiedHeadline":"Oil surge continues despite global reserve release","subCategories":["scid_dad10ecd"],"subcategoriesName":["Energy"],"region":"IN","bundleMetaData":{"bundleId":"c80449a0-0ad6-472b-8d17-5747dd8f5c83","bundleTitle":"Around the globe","cardData":null},"iabCategoryId":"81","iabCategoryName":"Commodities","fcSummary":"crude oil prices rose again, with west texas intermediate exceeding $90 per barrel, despite the iea's record 400 million barrel release from emergency reserves. the move aims to stabilize markets but faces hurdles, including halted tanker traffic and ongoing geopolitical tensions. iran's ceasefire demands and potential us strategic petroleum reserve releases add further complexity to the volatile situation.","summary":"Oil prices surge despite IEA's record reserve release. Strait of Hormuz tanker halt & Iran demands hinder stability. US may tap SPR.","ctaUrl":"https://trends.glance.com/newz/Economy/IN/en/cnbc-tv18/f-e550251d2f-9716e330-bb27-59d4-9307-d6424a459c1b","sourceUrl":"https://www.cnbctv18.com/market/commodities/crude-oil-prices-today-brent-wti-rising-despite-iea-strait-of-hormuz-trump-iran-war-19866571.htm","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/orAmm87nJL70.webp","content":"Crude oil prices continued to rise on Thursday, March 12, with the US crude grade or West Texas Intermediate, reclaiming the $90 per barrel mark in early trading, having added 5% to its price on Wednesday as well.\n\n
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\n Oil prices are rising despite the International Energy Agency agreeing to release a record number of barrels into the market in order to stabilise prices.\n
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\n The IEA will release 400 million barrels of oil from its emergency reserves, the largest ever release on record, surpassing the near-200 million barrels that were released back in 2022 to combat prices during the Russia-Ukraine war. However, the IEA has not shared any specific timeline as to when the barrels will hit the market with IEA's executive director Fatih Birol emphasizing that tanker traffic must resume through the Strait of Hormuz to restore stability.\n\n
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\n Analysts believe that the IEA decision does not do much to address the other problems that the global economy would face. Most of the refined products, including Jet fuel, still flow through the Strait of Hormuz, where tanker traffic has all but halted, as acknowledged by Birol as well.\n
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\n Additionally, concerns over a prolonged war are outweighing the IEA's decision. Iran has told its regional intermediaries that for a ceasefire to happen, the US must guarantee that neither it, nor Israel will attack the country in the future, recognise their rights, and pay for reparation work in the country. Bloomberg reported that Washington is unlikely to accept those norms.\n\n
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\n US President Donald Trump also welcomed the IEA's decision and hinted at tapping the US Strategic Petroleum Reserve to support prices. Trump will release 172 million barrels of oil from the SPR, which currently stands at 415 million barrels and at just over 50% of its overall capacity.\n
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\n Three vessels being hit by projectiles in the Strait of Hormuz and in the Persian Gulf has continued to add to uncertainties and danger for vessels in or wanting to transit through the region.\n
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(With Inputs From Agencies)\n","readDurationInMinutes":"4","author":{"name":"CNBC TV18","logo":"https://glance-mob.glance-cdn.com/public/bubble/jpeg/ecc3d19b-fc52-4a39-881c-5b0936ae723b.jpeg"},"ism":false,"analyticsResponses":[{"measurementId":"383191425","type":"COMSCORE"}],"pointerSummary":["Crude oil prices rose Thursday, reclaiming $90/barrel, despite IEA action.","IEA will release a record 400 million barrels to stabilise prices, timeline unclear.","Iran’s ceasefire demands & tanker traffic halts limit IEA’s impact; US may tap reserves."],"tags":["OilPrices","IEADecision","EmergencyReserves","StraitOfHormuz","JetFuel","CrudeOil","WTI","FatihBirol","RussiaUkraineWar","GlobalEconomy","Iran","Ceasefire","USForeignPolicy","DonaldTrump","StrategicPetroleumReserve","PersianGulf","Geopolitics"],"consent":true,"redirectionEnabled":false}

Explained — Why oil prices are still rising despite IEA decision on emergency reserves

SUMMARY