Spain to release 4.4 million barrels from strategic oil reserves

The Spanish government is releasing an additional 4.4 million barrels of strategic oil reserves this October to mitigate energy market volatility. This move follows an initial release of 3.7 million barrels and is part of a broader commitment made to the International Energy Agency (IEA) in March to release up to 11.5 million barrels in response to geopolitical tensions.

Following these two operations, Spain will have released a total of 8.1 million barrels. The remaining 3.4 million barrels of the committed volume are subject to ongoing reviews and international market developments. The intervention aims to address concerns regarding diesel and kerosene shortages, which the IEA has warned could persist into 2027.

While Brent crude prices have stabilized around $100 after reaching $120 in March, the relief has not fully reached refined fuel markets. Wholesale diesel prices remain significantly higher than pre-conflict levels, maintaining upward pressure on costs.