Institution: Oil reserves released by the International Energy Agency may take months to reach buyers

Priyanka Sachdeva of Phillip Nova stated in a report that the International Energy Agency’s plan to release 400 million barrels of oil from strategic reserves to ease supply disruptions could take weeks or months to reach buyers. The analyst said this amount is only enough to compensate for 30 days of supply loss caused by the turmoil in the Strait of Hormuz. She added that the risk premium for war-related oil is rising, which effectively makes oil more expensive even as physical supplies continue. She also mentioned that two oil tankers at a port in Iraq were attacked, raising concerns that oil prices may hover above $100 per barrel.