The Strategic Petroleum Reserve in Freeport, US
Oil stocks have become truly strategic
Strategic stock releases designed to alleviate price shocks emanating from disruptions came into their own after the Russia crisis
The world has experienced 20 oil market disruptions over the last 50 years. Up until this decade, the maximum price increase was predictable. Supply losses—or fears of losses—caused those holding stocks to hoard and those who needed stocks to bid aggressively, pushing prices up. Over that span, consuming nations had the option to moderate the price impact of disruptions by drawing down strategic stocks. Their leaders ignored such calls until 2022, when a significant release broke the price rise prompted by Russia’s invasion of Ukraine. In each of the disruptions before 2022, government officials would say the same thing. For example, in 2019, Brian Hook, US special representative for Iran an
Also in this section
21 February 2025
While large-scale planned LNG schemes in sub-Saharan Africa have faced fresh problems, FLNG projects are stepping into that space
20 February 2025
Greater social mobility means increased global demand for refined fuels and petrochemical products, with Asia leading the way in the expansion of refining capacity
19 February 2025
The EU would do well to ease its gas storage requirements to avoid heavy purchase costs this summer, with the targets having created market distortion while giving sellers a significant advantage over buyers
18 February 2025
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
