Unprecedented Intervention: Crude Near $80 as IEA Proposes Historic Oil Stockpile Flood

TradingKey - The International Energy Agency proposes the largest emergency oil reserve release in history; crude oil prices face downward pressure, putting the $80 threshold at risk.

On March 11, the International Energy Agency (IEA) proposed a release of strategic petroleum reserves, dragging international crude oil prices further downward. Among them, WTI crude oil ( USOIL) prices plummeted by over 2%, testing the $80 mark once again, and have currently rebounded to around $83.

WTI crude oil price chart, Source: TradingView

According to the Wall Street Journal, the IEA has proposed the largest-ever release of strategic petroleum reserves to counter high oil prices triggered by the U.S.-Iran conflict. Reportedly, the scale of this release will exceed the 182 million barrels deployed by IEA member states during the Russia-Ukraine war.

Prior to the IEA's proposal, countries and organizations including Japan, the United States, and the G7 had already issued statements or taken action to curb crude oil prices. Under the pressure of various forces, oil prices have seen a significant correction, currently retracing 27% from this year's high of $115 per barrel.