Source: New Zealand Government
New Zealand will release oil tickets to fulfil its commitment to the International Energy Agency’s collective action in response to the oil supply issues created by the closure of the Strait of Hormuz.
New Zealand’s contribution under the action, announced last week by the International Energy Agency (IEA), is 1.577 million barrels of crude oil or the equivalent.
“New Zealand holds oil tickets, which are options to purchase different types of oil or refined fuel. We will release some of the tickets we hold to the global market,” Associate Energy Minister Shane Jones says.
“Under the action, IEA members have agreed to release 400 million barrels of crude oil or equivalent to global markets. This is significantly greater in volume than the collective action taken in response to the Russia-Ukraine conflict in 2022.
“This will add much-needed supply globally, helping reduce pressure on global refineries which ordinarily access oil from the Middle East. The action should help to calm global markets,” Mr Jones says.
IEA members met at 1am (NZT) today to share their respective plans for responding to the collective action.
“It’s important to note that the tickets we are releasing are for crude oil or fuel we cannot use in our own domestic system. While this is an important contribution to the global situation, the release has minimal impact on New Zealand’s domestic fuel security position,” Mr Jones says.
Editors’ note
- Oil tickets are contracts that give the Government the option to purchase different types of fuel. New Zealand is not releasing physical supply to the market.
- The purchase options New Zealand will release are for crude oil and a form of fuel incompatible with New Zealand specifications.
For latest on New Zealand’s fuel security situation following the events in the Middle East, please visit the Ministry for Business, Innovation and Employment website: Middle East conflict and New Zealand’s fuel stocks | Ministry of Business, Innovation & Employment