German Stockpiling Agency Says It's Refilling Strategic Reserve

German Stockpiling Agency Says It's Refilling Strategic Reserve

Germany’s oil stockpiling agency EBV is looking to refill strategic reserves of diesel, a move that could pile more pressure on an already tight fuel market.

A tender for more than 760,000 barrels of diesel was issued earlier this week by EBV. On Tuesday, an official at the agency confirmed to Bloomberg by email that this is intended to refill strategic reserves The agency also issued tenders in late June seeking almost 630,000 barrels of the fuel.

The refilling of strategic reserves will create additional demand for diesel in Europe, supplies of which are still constrained from the impacts of the Iran war. The region, which is a net importer of the fuel, is also facing increased competition for barrels thanks to a sharp drop in exports from Russia.

Back in March, International Energy Agency member countries agreed to make 400 million barrels of oil — a mixture of crude and refined products such as diesel — from their emergency reserves available to the market, in response to disruption caused by war in the Middle East.

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