Ottawa/IBNS-CMEDIA: Canada will contribute 23.6 million barrels of oil to a coordinated global release aimed at stabilising energy markets after disruptions in the Strait of Hormuz triggered sharp volatility in global oil prices.
The move comes after the 32 member states of the International Energy Agency agreed to release 400 million barrels of emergency oil stocks, the largest coordinated intervention in the agency’s history, to offset supply disruptions linked to the escalating conflict in the Middle East.
According to the Canadian government, the country will meet its commitment primarily through increased oil production coordinated with provincial governments and domestic energy companies.
Canada, one of the world’s largest energy producers, is currently the fourth-largest oil supplier globally and the largest within the IEA, giving it a key role in supporting global supply during energy shocks.
Energy analysts say the emergency release reflects growing concern about the disruption of oil shipments through the Strait of Hormuz, a critical maritime chokepoint that normally carries roughly 20% of the world’s seaborne oil trade.
The coordinated intervention is intended to ease pressure on global fuel prices and prevent deeper disruptions to energy markets.
“The oil market challenges we are facing are unprecedented in scale,” IEA Executive Director Fatih Birol said in a statement, adding that the coordinated release demonstrates strong global cooperation to address supply shocks.
Canada’s contribution will be delivered over several months through increased production and supply commitments by domestic producers, according to government officials.
Officials also said Canada plans to expand natural gas exports in the coming months, helping supply allies and global markets facing shortages amid the ongoing crisis.
Global oil markets have remained volatile since the conflict disrupted shipping routes and damaged energy infrastructure in the region.
Prices surged toward $100 per barrel earlier this week as traders reacted to the potential loss of millions of barrels of daily supply.
Energy experts say the coordinated release is designed to provide temporary relief while governments and industry work to restore stable supply chains.
IEA member countries collectively hold more than 1.2 billion barrels in emergency reserves, along with hundreds of millions of barrels in industry stockpiles, allowing governments to intervene during major supply disruptions.
Canadian officials said the country will continue working with provincial governments and industry partners under a “Team Canada” approach aimed at strengthening long-term energy security, stabilising markets and supporting global cooperation during the crisis.
(Reporting by Suman Das)
