The biggest release of emergency oil stockpiles in history was announced. Why crude may keep rising

In this article Follow your favorite stocks CREATE FREE ACCOUNT watch now VIDEO 7:17 07:17 Oil markets brace for fallout as Iran conflict echoes Iraq war turmoil Markets and Politics Digital Original Video The oil market sent a clear signal this week that a massive release of stockpiled crude by the U.S. and its allies is nowhere near enough to address the unprecedented supply disruption triggered by the Iran war. More than 30 nations in Europe, North America and Northeast Asia agreed to flood the market with 400 million barrels of oil in an effort to keep a lid on rising energy prices. The U.S. is leading the effort with a release of 172 million barrels from its Strategic Petroleum Reserve or 43% of the IEA total. It is the largest release of stockpiled oil in the 50-year history of the International Energy Agency, an organization tasked with maintaining the energy security of its members during global crises. But the oil bazooka is not inspiring confidence in the market. Crude prices have surged more than 17% since the IEA announced the emergency stockpile release on Wednesday. Brent oil prices, the international benchmark, closed above $100 on Friday for the second session in a row. Brent crude oil futures in the past five days The explanation is simple, said Tamas Varga, analyst at the London-based oil broker PVM. Tankers are under attack in the Persian Gulf, the critical Strait of Hormuz remains basically closed, and Iran's new supreme leader has vowed to keep the trade chokepoint shut. "Until transit is reactivated, those kinds of policy announcements are going to have limited impact," said Tom Liles, senior vice president of upstream research at consulting firm Rystad Energy. Saudi Arabia, Iraq, Kuwait and the United Arab Emirates exported around 14 million barrels per day before the war, Liles said. Around 5 million bpd to 6 million bpd can be exported through Saudi and UAE pipelines that terminate at the Red Sea and Gulf of Oman, he said. This leaves around...