West Texas Intermediate (WTI) US Oil traded around $95.30 on Friday, remaining virtually unchanged for the day as markets weighed supply relief measures against escalating geopolitical risks in the Middle East [1]. Volatility in oil prices followed announcements from Australia and Japan regarding releases from their strategic reserves. Australia’s Energy Minister Chris Bowen stated the country would release up to 762 million litres of fuel from its reserves and temporarily ease stockholding rules, reducing minimum fuel storage requirements by up to 20% to mitigate supply disruptions linked to the ongoing conflict involving Iran [1].
Japan announced plans to release approximately 80 million barrels of oil from its strategic reserves, equivalent to about 45 days of supply. This measure, set to begin on Monday, will be coordinated with the G7 and the International Energy Agency (IEA). Japan’s reliance on the Middle East is significant, with about 95% of its oil sourced from the region and nearly 90% of shipments passing through the Strait of Hormuz [1].
Despite these efforts, supply risks remain elevated due to escalating tensions involving the United States, Israel, and Iran, which have led to the closure of the Strait of Hormuz—a critical chokepoint for global oil shipments [1]. The IEA estimates that supply disruptions could reach at least 8 million barrels per day, marking one of the largest outages ever recorded in the global oil market. In response, industrialized countries within the IEA have announced a record release of around 400 million barrels from emergency reserves to cushion the shock [1].
Analysts at Commerzbank caution that reserve releases provide only temporary relief. Even if spread over several months, these measures would only partially offset supply losses should the Strait of Hormuz remain fully closed. The oil market is expected to remain driven by geopolitical developments, and institutions note that as long as the conflict persists and risks to key energy shipping routes remain high, oil prices should continue to find strong fundamental support [1].
CONCLUSION
WTI oil prices are holding steady near $95 as strategic reserve releases from Australia, Japan, and other IEA members attempt to offset major supply disruptions caused by Middle East tensions and the closure of the Strait of Hormuz. Analysts warn that these measures are only a temporary fix, and ongoing geopolitical risks are likely to keep oil prices supported. The market impact is high, with future price movements closely tied to developments in the region.