The IEA's second "drainage" is difficult

According to reports, sources have recently stated that Germany and Italy do not agree with the decision of the International Energy Agency (IEA) to release oil reserves at the end of June. When asked if Germany and Italy are likely to oppose the International Energy Agency's release of oil reserves again, he believes there is such a possibility.

Since the IEA has already had some controversy over the “oil release” at the end of June, this controversy seems to be “fermenting”. Looking at the current situation, the "dissense" of Germany and Italy, the main member countries of the International Energy Agency, also shows that the future of the IEA's release of oil reserves is decreasing under the background of no major fluctuations in crude oil prices.

German or Italian or opposed to the second "delivery"

According to reports, sources said: "Germany and Italy do not agree with the IEA's decision in June. They may oppose releasing the reserve again." The person also said that France will not lead the opposition but will not ask for further Release strategic oil reserves. Earlier, a German government official stated: "In terms of demand, the IEA release of oil reserves has not been fully utilized."

Since the IEA needs the unanimous support of all members, it can release more oil reserves to the market. Therefore, once the IEA failed to obtain consent when soliciting opinions from Germany and Italy, the IEA will not release oil reserves to the international crude oil market again on the 23rd of this month.

However, judging from the current situation, the "dissident" between Germany and Italy on the issue of secondary oil reserve is still only a possibility. After all, when the International Energy Agency last decided to release oil reserves, the two countries still voted in favor, even though the two countries already had "objections" at that time.

Economic recovery requires oil prices In terms of developed economies in Europe and America, the IEA has sufficient reasons to release its oil reserves.

On the one hand, European economies are generally faced with a dilemma of slowing economic recovery and rising domestic inflation. The UK is also facing “stagflation”. For the relatively conservative European Central Bank, inflation is even greater than the risk of economic downturn. Therefore, controlling commodity prices, especially crude oil prices, will have a greater impact on Europe’s economic recovery. On the other hand, for the United States, although the Fed’s inflation target is a core CPI that excludes energy prices, given that the United States’ dependence on crude oil is extremely high, the cost of crude oil will be directly reflected in the cost of clothing, food, housing and transportation of Americans. In the context of repeated US recovery, the Fed needs to control the core CPI in order to achieve its continued loose monetary policy and ultimately stimulate the US employment situation.