June 28, 2011 [OPIS] - The International Energy Agency today gave some more detail for its planned summer release of petroleum reserves.
It turns out that a substantial portion of the European contribution will come in the way of refined products stocks.
In all, the details tell of 60.6 million bbl of petroleum getting distributed and disbursed on global markets. However, sources note that there was an expectation that nearly all of the releases might consist of sweet crude, where high prices for various at-sea blends have created some economic malaise for consuming countries. Today’s delineation of barrels probably takes some of the edge off of recent selling in the Brent market, which is the at-sea sweet crude oil benchmark targeted by the governments.
The release for the U.S. doesn’t get modified. Some 30 million bbl of Strategic Petroleum Reserve (SPR) crude will hit the market, and no U.S. refined products stocks are part of the release (the only refined products in U.S. strategic storage are in the northeastern heating oil reserve).
Strategic storage is handled differently in Europe and Asia with some of the inventory coming from public or government-managed storage tanks, but much of the strategic reserve bbls held by industrial firms. In Europe, there will be a total contribution of 19.242 million bbl, with many of the barrels coming from industry coffers. Europe will contribute just 4.18 million bbl of crude and 15.058 million bbl of refined products. The breakdown of products includes 3.4million bbl of gasoline; 7.66 million bbl of diesel; 1.18 million bbl of residual fuel; and 422,000 bbl of jet fuel. The countries that contribute to the release are Belgium, France, Germany, Italy, Netherlands, Poland, Spain, Turkey and the United Kingdom.
In the Pacific region, Japan will release 7.9 million bbl of total petroleum inventory that include 3.958 million bbl of crude and 3.958 million bbl of refined products. There has been no detail provided for the mix of refined fuels in the Japanese release. Korea, meanwhile, will let go of 3.46 million bbl of crude from publicly managed coffers.