Costs and benefits of emergency stockholding

Abstract

An updated study assessed the costs and benefits of emergency oil stocks, considering market developments since 2013. Overall costs decreased due to lower oil prices but remained within the 2013 estimates’ range. Economic benefits, like GDP loss prevention, are estimated to be around $60 per barrel per year, totaling $3.9 trillion over 30 years. Non-IEA importing countries are projected to benefit more. Compared to the 2013 study, net benefits increased by 10% due to fewer IEA emergency stocks. However, factors like reduced oil price shock sensitivity and less flexible oil demand offset this increase. – AI-generated abstract.