THE Spanish government has agreed to release 11.5 million barrels from the country’s strategic oil reserves as part of a coordinated effort to mitigate the impact of the ongoing near-total closure of the Strait of Hormuz.
The latest batch will cover more than a week and a half of national consumption and represents almost 3% of the 400 million barrels that the International Energy Agency (IEA) has agreed to release from global emergency reserves – roughly one-third of the total held worldwide.
Sara Aagesen, the minister for Ecological Transition, used a press conference on Tuesday to hail the move as ‘the largest release of oil resources in history’, surpassing the 180 million barrels released in 2022 when Russia’s invasion of Ukraine rattled global markets.
She said Spain had already begun releasing nearly four million barrels as part of a ‘coordinated and multilateral effort’ alongside IEA allies.
The move comes as Europe looms on the brink of the ‘worst energy crisis since the 1970s’ as the war in Iran drives the price of oil to its highest level in years.
Brent crude, the international benchmark for oil prices, spiked by nearly 29 per cent last week to nearly $120 (€103) per barrel, before settling down at a still-high rate of around $103 (€90).
The surge came after Iran effectively shut down the Strait of Hormuz, a vital maritime shipping route through which around 20% of the world’s oil and liquified natural gas passes.
Shipping traffic exiting the Persian Gulf through the strait has been effectively halted and tankers are stranded because of the risk that vessels could be attacked.
Key oil producers in the Gulf, including Kuwait, Bahrain and the UAE, have also cut down on production after Iranian drone strikes damaged several oil refineries across the Middle East.
In total, Spain currently holds oil reserves equivalent to 92 days of national consumption.
The 11.5 million barrels set to be released will include 2.2 million barrels of petrol, 9 million barrels of middle distillates such as diesel and kerosene, plus 227,000 barrels of fuel oil.
Ministers hope the move will contain spiralling prices for households and motorists.
On Friday, the cabinet is set to approve an emergency package of support designed to protect the sectors most exposed to the current crisis, such as transport, agriculture and fishing.
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