As part of the International Energy Agency’s release of 400 million barrels of oil stock reserves, Associate Minister for Energy Shane Jones says New Zealand, which is a member country of the agency, could make oil available by potentially terminating its oil tickets.
As one of 32 member countries of the International Energy Agency (IEA), there was unanimous agreement that 400 million barrels of oil from emergency reserves - the IEA's largest-ever release - will be made available to address disruptions in oil markets stemming from the war in the Middle East.
According to The Wall Street Journal, French President Emmanuel Macron said 400 million barrels equates to roughly about 20 days of supply coming out of the Strait of Hormuz.
In a press release from the IEA, the agency said the conflict in the Middle East has “impeded oil flows through the Strait of Hormuz, with export volumes of crude and refined products currently at less than 10% of pre-conflict levels".
“This is forcing operators across the region to shut in or curtail a substantial amount of production,” the agency said.
“An average of 20 million barrels per day of crude oil and oil products transited the Strait of Hormuz in 2025, or around 25% of the world’s seaborne oil trade. Options for oil flows to bypass the Strait of Hormuz are limited.”
IEA members hold emergency stockpiles of over 1.2 billion barrels, with a further 600 million barrels of industry stocks held under government obligation.
'Small but significant contribution'
Associate Minister for Energy, Shane Jones, who is responsible for fuel security, told the Ministerial Economic Security and Supply Chains Group, which had its first meeting on Wednesday evening, about this decision.
Members of the IEA are required to hold at least 90 days of oil stocks. New Zealand holds its stocks in part, through oil tickets or contracts.
Jones said: “New Zealand’s contribution is equivalent to about six days’ fuel supply here. It can make that contribution through measures such as terminating its tickets to make the oil available to the market.”
The Government has not yet determined how it will do this, Jones said, but he said it would ensure “the impact on Kiwis is minimised”.
“We should not overlook the fact that we are making a small but significant contribution to protecting global economies and helping to ease the oil price and supply issues around the world.”
At the meeting on Wednesday evening, ministers were advised that fuel companies in New Zealand are reporting no significant supply chain issues and that fuel stock levels, both onshore and in transit to New Zealand, remain strong.
The ministerial group was briefed by a new incident management group set up by the Ministry of Business, Innovation and Employment (MBIE), and from the fuel industry’s coordinating group.
“New Zealanders should be reassured that we are monitoring this very, very closely. When we receive information, we will share that information. If circumstances change, we will swiftly notify the public. There is no need for panic or over-reaction,” Jones said.
MBIE’s latest fuel stock update as of midnight, March 8, recorded a total of 52 days for petrol, diesel and jet fuel in country and in-water.
There was 57.9 days worth of petrol total, 49.9 of diesel and 46.8 of jet fuel.
Oil prices rise
Even if the Strait of Hormuz reopened on Thursday, the status quo was unlikely to be restored and the echo of this crisis may last a very long time. At least, that is what markets are pricing in.
Oil prices have risen despite official fanfare that strategic oil reserves are being released.
American oil prices are up US$3, at just under US$87.50/bbl, while the international Brent price is now just over US$91.50/bbl.
In an ASB Daily Alert, senior economist Mark Smith said while the stockpile release sounds like a lot, it only equates to up to 20 days of the normal flow of oil transported through the Strait of Hormuz.
“The war continues to escalate with commercial shipping attacked by Iran, air travel in the region significantly disrupted and the death toll from the war rising. President Trump repeated his suggestion that the war will end soon but offered no specific timeline,” Smith said.
3 Comments
So we don't hold stocks.
Linguistics... always important.
We hold proxy, which is an entirely different thing
Ane we're relinquishing 6 days worth of proxy.
Reminds me of Mack and the Boys, and their IOU.
Statements like 'In an ASB Daily Alert, senior economist Mark Smith said while the stockpile release sounds like a lot, it only equates to up to 20 days of the normal flow of oil transported through the Strait of Hormuz.' and different ministers statements quoted in https://www.interest.co.nz/economy/137587/government-ministers-meet-ove… make it obvious ( at least to me) that this will be a war with economic, geopolitical, trade, and defence consequences that last for many months and probably for years for NZ.
In https://www.interest.co.nz/currencies/137539/roger-j-kerr-invites-us-pi… I picked scenario 3 at 85%, scenario 1 at 5% and scenario 2 at 10%. These weren't just random guesses but based mainly on my several understandings that-
Trumps statements are predominantly insightless BS... I could write a lot more but no obvious need.
The leadership team in the USA govt. refused to seek advise from highly qualified experts with considerable military and academic training and experience who gave prior warnings of unintended, prolonged and unpredictable consequences to a military attack.
Historical evidence shows wars have unpredictable outcomes and go on longer than planned for by instigators.
Pain and suffering inflicted by aggressors is traumatic and not forgotten by generations of victims and their descendants, some of whom are likely to seek revenge even years after this USA Israel attack.
Practically none of what I've just written will make an iota of difference to the NZ public and their well being. What does matter is our individual and collective decisions responding to these unfolding events, and the single most important for NZ imo is rapidly achieving energy independence which is through increased electricity generation by geothermal, wind, solar and pumped hydro for electric vehicles and industry on the national scale with nationally incentivised home/ school/supermarket etc. roofs with solar and battery installation and electric vehicles for those who can afford it by government plus industry cooperative schemes that facilitate faster uptake due to price reductions, product testing and quality assurance due to economies of scale.
Merde is gonna start hitting the fan...
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