New Zealand to release more oil from emergency stock to offset loss from Russia


New Zealand will release more oil from its emergency stock to offset the global impact of Russia's invasion of Ukraine.

Russia is the world's third-largest crude oil producer, and it has withheld supplies to Europe in response to sanctions over its war on Ukraine.

This morning, 31-member countries belonging to the International Energy Association (IEA) held a special meeting and decided to release more barrels of oil to offset the loss of Russian oil exports.

In a statement, Energy and Resources Minister Megan Woods said New Zealand had already contributed 369,000 barrels last month as part of the IEA's commitment to release 60 million barrels.

A decision would be made next week on the size of the latest release, Woods said.

"New Zealand's membership of the IEA requires it to hold stocks equivalent to at least 90 days of net oil and imports.

"New Zealand buys emergency reserve stocks that are held offshore as part of this obligation and help to manage potential disruptions in the oil market."

She said New Zealand was ready to play its part to help stabilise world energy markets.

"There has been a great deal of volatility in global oil markets since the invasion and this further action, coupled with the United States' move to release 180 million barrels of oil over the next six months, will help to provide some certainty to the market," Woods said.