The United States will contribute half of the 60 million barrels of oil International Energy Agency (IEA) countries agreed to release Tuesday to stabilize global markets after Russia’s invasion of Ukraine, President Joe Biden said.
“I can announce the United States has worked with 30 other countries to release 60 million barrels of oil from reserves around the world. America will lead that effort, releasing 30 million barrels of oil,” Biden told members of Congress in his first State of the Union address.
He added that Washington stands “ready to do more, if necessary.”
The decision earlier in the day by 31 member countries of the IEA’s governing board aims to “send a unified and strong message to global oil markets that there will be no shortfall in supplies” as a result of the Ukraine conflict, it said in a statement.
Ministers “expressed solidarity with the people of Ukraine and their democratically elected government in the face of Russia’s appalling and unprovoked violation of Ukraine’s sovereignty and territorial integrity,” it added.
The invasion came “against a backdrop of already tight global oil markets, heightened price volatility, commercial inventories that are at their lowest level since 2014,” the statement noted.
Producers had a limited ability to provide more supply in the short term, it added.
Oil prices surged throughout the day, with Brent crude breaking above $110 a barrel as trading opened in Asia.
Brent climbed 4.88 percent to $110.09, while WTI was up 5.06 percent at 108.64. Both are at more than seven-year highs.