The International Energy Agency (IEA) is proposing release of 300M to 400M barrels of oil from global emergency stockpile to combat soaring oil prices in wake of the 20M bpd of oil supply being blocked by the effective closure of the Strait of Hormuz. The IEA’s 32 members hold more than 1.2B barrels in public emergency stockpiles (and additional 600Mb of industry stocks under government obligation), and the contemplated release would tower above the record 182Mb release following Russia’s 2022 Ukraine invasion. At a Wednesday meeting, G-7 leaders will discuss and vote to authorize the stockpile release.
Following a Wednesday emergency meeting, South Korea’s Ministry of Climate, Energy and Environment announced acceleration of the restart of 6 nuclear reactors undergoing maintenance (2 in March and 4 by mid-May) and expansion of coal-fired plant operation schedules in response to Qatar’s suspension of LNG production at its largest plant following last week’s Iranian drone attack. South Korea gets almost all its electricity from nuclear, natural gas and coal and is heavily dependent on imports for the fossil fuels (14% of its LNG comes from Qatar).
European Commission Chief Ursula von der Leyen said Europe’s decision to reduce its nuclear energy sector was a “strategic mistake.” Nuclear power’s share of EU energy production has fallen from one-third in 1990 to just 15% today. “This reduction in the share of nuclear was a choice. I believe it was a strategic mistake for Europe to turn its back on a reliable, affordable source of low-emissions power.”
Aramco CEO Amin Nasser told reporters on an earnings call, “There would be catastrophic consequences for the world's oil markets and the longer the [Iran] disruption goes on...the more drastic the consequences for the global economy.”
South China Morning Post reports the U.S. has roughly two months of rare earth supplies available for military use, which could influence how long Washington can sustain Iranian strikes.
U.S. February payrolls fell 92k (vs. +55k est.) with 2-month revisions -69k. Three of past 5 months have been negative prints with 5-mos. avg. -16.4k. Unemployment rate increased 10bpts to 4.4%, although that would have been worse had the participation rate not fallen to 62% (from downwardly revised 62.1%).Interested in learning more about investing in Real Assets like precious and battery metals? Potentially get access to private placements with miners and Junior miners? Plus, get exclusive videos, articles and market commentary on the sector for free? Join our Wealthion Real Assets Community now by clicking below.