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,” said Associate Energy Minister Shane Jones.
“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."
Jones mentioned that this will add much-needed supply globally, helping reduce pressure on refineries that ordinarily access oil from the Middle East. The action should help to calm global markets.
IEA members met 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 that 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.
Oil tickets are contracts that give the Government the option to purchase different types of fuel. New Zealand is not releasing physical supplies to the market. The purchase options New Zealand will release are for crude oil and a fuel form incompatible with New Zealand specifications.
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