Uche Cecil Izuora
The U.S. has informed fellow members of the International Energy Agency (IEA) that current plans to release emergency oil inventories don’t go far enough to quell rising fuel prices, according to people familiar with the matter.
The Governing Board of the Agency In July unanimously agreed for Nigeria to join the IEA Family as an Association country, deepening the Agency’s cooperation with Africa’s most populous nation in a major advance for global energy governance.
Nigeria’s growing role in international energy markets has been highlighted by recent developments in its refining sector. During recent periods of market disruption, increased fuel exports from Nigeria helped strengthen resilience in African and international fuel markets. The country has also emerged as one of the world’s fastest-growing markets for decentralised solar solutions and is stepping up efforts to expand access to electricity and clean cooking.
While U.S. officials attending an IEA gathering in Paris on Thursday have yet to table a proposal about what should be done, they have been informally lobbying for an extra commitment of at least 100 MMbbl, the people said, asking not to be identified because the matter is not public.
Back in March, the IEA organized the release of 400 MMbbl of oil and fuel but some governments kept hold of their buffers, arguing they weren’t needed. Earlier this month, Group of Seven nations agreed to release up to 100 MMbbl—a volume that EU officials subsequently said only represented the unreleased portion of what was agreed back in March. The U.S. wants more than that.
Thursday’s meeting comes as conflicts in the Middle East and Russia squeeze supplies of the industrial workhorse fuel and send pump prices to record levels, spurring President Donald Trump to contemplate banning U.S. exports of diesel and even announce a supply deal with Russian leader Vladimir Putin.
The IEA didn’t immediately respond to requests for comment and a call to the U.S. Energy Department’s media line was unanswered