IEA's Birol reiterates that the Middle East conflict is creating the largest ever supply disruption. Oil prices are significantly lower W/W. The reserve release provides a buffer, but is not a lasting solution.

IEA Action

• Barrels are flowing to Asia, as a result of IEA action.
• Over 20mln barrels in the Americas will stem from increased production.
• Monitoring to ensure barrels get to the market in a timely manner.
• Despite the huge release, still have a large stockpile. Can do more later, if required.
• Non-IEA nations are looking to see what support they can provide.

Focus Points

• The most important thing is the resumption of flows through the Strait of Hormuz.
• Even if the Strait opened tomorrow, it would take time for flows to recover.

General Commentary

• The impact is most significant in Asia.
• The impact on consumers and similar is most notable in EM/developing markets.
• Middle East producers are being impacted.