Reserves release
The European geopolitical situation, as a result of Russia's invasion of Ukraine in February 2022, has caused instability in the international market for crude and oil products. For this reason, the International Energy Agency (IEA) has activated two Coordinated Response Plans.
The IEA's Coordinated Response Plan of March 1, 2022, added 60 million barrels of oil (MBbl) to the global market. Spain contributed to this by releasing 2 MBbl of the existing minimum security stocks in the country.
The Order PCM/153/2022 triggered the Agreement of the Council of Ministers on March 4, 2022, by which the 2 MBbl were released temporarily reducing the total obligation from 92 to 89.4 days. Therefore, the obligation to maintain minimum security stocks of petroleum products for obliged entities was reduced by 2.6 days. The minimum stocks released had to be introduced into the market during a period of 30 days.
The possibility of a more severe supply interruption to Europe led the IEA to activate a new Coordinated Response Plan. Thus, on April 1, 2022, the decision was made to release an additional 120 MBbl to the 60 MBbl previously released.
The Resolution of June 1, 2022, of the Secretary of State for Energy, which publishes the Agreement of the Council of Ministers of May 17, 2022, establishes that Spain would progressively contribute 4 MBbl, approving a further reduction of the obligated entities’ obligation by 5.2 additional days. Thus, the total obligation is therefore reduced to 84.2 days. The introduction on the market of the minimum released stocks must be carried out in a maximum period of 4 months.
The Order TED/553/2022, of June 16, temporarily reduces the obligation to maintain minimum security stocks of petroleum products on obligated entities by 3 days, equivalent to 2.3 MBbl. Consequently, the obligation is further reduced from 89.4 to 86.4 days. This reduction will be implemented through the minimum security stocks maintained by the obligated entities. This release into the market will be carried out during the period established in the Agreement of the Council of Ministers of May 17, 2022.
The Order TED/725/2022, of July 27, from August 1, temporarily reduces the obligation to maintain minimum security stocks of petroleum products on obligated entities by 2.2 days, equivalent to 1.7 MBbl. Consequently, the obligation is temporarily further reduced from 86.4 to 84.2 days until a revised reserves level is confirmed. This reduction will be implemented through the minimum security stocks maintained by the obligated entities. This release into the market will be carried out during the period established in the Agreement of the Council of Ministers of May 17.
CORES will monitor the release of the minimum security stocks for consumption, informing the Ministry for the Ecological Transition and the Demographic Challenge periodically, according to the established channels. CORES, in accordance with its internal procedures, may request from the regulated entities as much information as it deems appropriate, with a view to the adequate monitoring of the availability for consumption of the stocks that, due to national or international requirements, may be necessary.