THE United States (US) will contribute half of the 60 million barrels of oil that International Energy Agency (IEA) countries agreed to release to stabilise global markets after Russia’s invasion of Ukraine, said President Joe Biden.

“I can announce that the US has worked with 30 other countries to release 60 million barrels of oil from reserves around the world. America will lead that effort, releasing 30 million barrels of oil,” he told members of Congress in his first State of the Union address.

He added that Washington stands “ready to do more, if necessary”.

The earlier decision by 31 member countries of IEA’s governing board aims to “send a unified and strong message to global oil markets that there will be no shortfall in supplies” as a result of the Ukraine conflict, it said in a statement.

Ministers “expressed solidarity with the people of Ukraine and their democratically elected government in the face of Russia’s appalling and unprovoked violation of Ukraine’s sovereignty and territorial integrity”, it added.

The invasion came “against a backdrop of already tight global oil markets, heightened price volatility and commercial inventories that are at their lowest level since 2014”.

Producers have a limited ability to provide more supply in the short term, it added.

Oil prices surged throughout the day, with Brent crude breaking above US$110 (RM461) a barrel as trading opened in Asia.

Brent climbed 4.88% to US$110.09, while WTI was up 5.06% at US$108.64. Both are at more than seven-year highs. – AFP, March 2, 2022.