Italy open to more oil stock releases contingent on European pledges

Italy has fully met its obligations under the International Energy Agency's (IEA) emergency oil stock release plan and remains open to providing additional supplies, provided other European nations fulfill their outstanding commitments.

An Italian government official told Reuters on Thursday, that the IEA agreed on Wednesday to accelerate planned releases from emergency oil reserves and prioritize diesel supplies as governments seek to ease soaring prices triggered by shortages stemming from war in Iran and Ukraine.

The official confirmed that Rome has delivered on its 10-million-barrel pledge made in March, which relied entirely on industry-held product reserves.

The announcement follows an IEA agreement to accelerate emergency releases and prioritize diesel supplies to combat soaring energy prices driven by shortages.

Market estimates indicate that European nations still have tens of millions of barrels left to release from previous pledges.

While countries like France have moved forward with additional diesel reserve deployments, Italian officials maintain that a broader, equitable push across the continent is necessary before new national volumes are committed.

According to JPMorgan, Europe still ⁠has around 40 million barrels left to release of 108 million barrels pledged.

France on Wednesday announced a 10-million-barrel release from its emergency diesel reserves. Government spokesperson Maud ⁠Bregeon said it would take about a year to replenish the stocks and that the release would cover ⁠about 20% of the country's diesel consumption of 54 million barrels over a three-month period.