Oil crisis grows: Turkey opens strategic reserves

Due to the crisis in global energy markets, countries have begun to tap into their strategic oil reserves. The contraction in oil supply caused by the Iran-linked war and shipment problems in the region has led to new steps being taken on an international scale.

Turkey has also joined the countries that have decided to use their strategic reserves in this context.

TURKEY TO RELEASE 11.6 MILLION BARRELS OF OIL

In a statement to Bloomberg, Alparslan Bayraktar announced that Turkey will release 11.6 million barrels of oil from its national oil reserve to the market.

Bayraktar stated that this decision is part of a plan adopted by the International Energy Agency, which envisions the release of a total of 400 million barrels of strategic oil stocks.

SHIPMENT CRISIS IN THE STRAIT OF HORMUZ

Shipment disruptions in the Strait of Hormuz are cited as one of the primary reasons for the tightness in global oil supply.

It was reported that as of March 1, shipments through the strait, which handles approximately 20 percent of global oil consumption, have decreased by 86 percent.

It was reported that more than 700 oil tankers not belonging to Iran on both sides of the strait have halted their voyages due to increasing security risks.

HISTORIC MOVE BY THE INTERNATIONAL ENERGY AGENCY

The International Energy Agency has decided on a comprehensive intervention due to the risk that the ongoing conflicts between the US, Israel, and Iran could create an energy crisis in the global economy.

The agency recommended that member countries release their strategic oil stocks to the market at record levels in order to curb the rise in oil prices.

2022 RECORD BEING SURPASSED

Developments in the oil market indicate that the record for reserve usage previously seen in 2022 may be surpassed.

The fact that major producers such as Saudi Arabia and Iraq have been forced to cut production by approximately 6 million barrels per day has made the International Energy Agency's plan an important step for the market.

CAME AFTER THE G-7 DECISION

It was stated that this reserve move came immediately after the "joint action" decision taken at the G-7 Finance Ministers meeting.

While it was stated that Western countries are acting in a coordinated manner against the energy crisis, it was noted that the impact of the plan will depend on how quickly countries release their reserves to the market.

CONSECUTIVE DECISIONS FROM MAJOR ECONOMIES

Some countries have begun to use their own reserves without waiting for the IEA's collective decision.

Japanese Prime Minister Sanae Takaichi announced that the country's strategic oil reserves would be opened for use as of March 16. It was stated that Japan meets approximately 95 percent of its oil needs from the Middle East.

The German government also announced that it has released a portion of its national oil reserves to maintain balance in the markets.

UK Chancellor of the Exchequer Rachel Reeves stated "very clearly" that they are ready to use reserves to reduce the pressure on oil prices.