IMF, World Bank, IEA Urge Countries to Stop Hoarding Energy Supplies

• The International Monetary Fund (IMF), World Bank, and International Energy Agency (IEA) on Monday urged countries to avoid hoarding energy supplies and imposing export controls, warning this could worsen the biggest shock ever to the global energy market.
• IEA chief, Fatih Birol, said several countries were holding onto stocks and imposing export restrictions, and appealed to all countries to let energy stocks flow to the markets. He stressed that energy supplies should be allowed to flow to markets, while IMF Managing Director Kristalina Georgieva urged countries to “do no harm,” warning such actions would worsen disequilibrium.
• Birol also noted during an Atlantic Council event that the U.S. military blockade of ships leaving Iran’s ports, which began on Monday, could exacerbate the worst global energy disruption ever. With more than 80 oil and gas facilities damaged, and prices for oil, gas, and fertiliser rising, concerns about food security, job losses, and broader economic strain are mounting.
• Officials warned that no country is immune, with the impact expected to be more severe for regions already facing supply concerns, particularly in Asia, Sub-Saharan Africa, and small island economies.
• The IEA chief noted that while he hopes another oil stockpile release is not needed, the agency was ready to act if the energy shock from the U.S.-Israeli war with Iran requires it. The 32-member IEA agreed ​last month to release 400 Mn barrels of oil from reserves, the largest-ever coordinated release, in ​a bid to calm oil markets. 

(Source: Reuters)