Asian Countries Also Release Oil Reserves: Equivalent to $140B Stimulus

Asian countries followed the IEA's lead and are also releasing emergency oil stockpiles in a rare global coordinated action to boost the sagging global economic recovery.

JPMsaid even some cooling effect on prices "would prove a boon to the world economy": "If our projections are realized, the IEA release provides the equivalent of a $140 billion stimulus to consumers,"  "The release will prove stimulatory to the global economy, particularly for emerging markets and the U.S."

Oil prices fell sharply to a four-month closing low on Thursday, then rose overnight, only to fall again today after the Asian news.
IEA Asian members Japan and Korea said that from next week they will start releasing oil reserves in line with the agency's targets. Japan will cut the reserve requirement for oil companies by 7.9 million barrels over the next 30 days and South Korea will release 3.46 million barrels, together providing about 19 percent of the IEA target.
Some analysts say the IEA decision will only have a short-term impact on prices becuase oil faces an incremental increase in demand now after several countries are turning away from nuclear power generation following Japan's crisis.

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