G7 ready to act on oil but holds off tapping reserves
G7 countries say they are ready to implement “necessary measures” in response to rising global oil prices but have stopped short of committing to releasing emergency reserves.
This is despite the fact that crude oil prices exceeded $119 per barrel during the US-Israeli war against Iran.
“We’re not there yet,” French Finance Minister Roland Lescure told reporters in Brussels after hosting a teleconference meeting of G7 finance ministers.
“We agreed to use whatever means necessary to stabilize the market, including the potential release of required stocks.”
Oil prices rose to their highest levels since mid-2022 on Monday, driven by fears of prolonged disruption to shipments and reduced output from some major producers worried about an escalation of conflict.
A G7 official told Reuters there was “broad consensus” not to release reserves at this stage.
“This wasn’t about someone objecting, it’s just about timing. More analysis is needed,” the official said, adding that the final decision would rest with G7 leaders.
Lescure, whose country holds the G7 presidency this year, said that there is currently no supply problem in either Europe or the USA.
Many countries coordinate their strategic oil stocks through the Paris-based International Energy Agency, which was established after the oil crisis of the 1970s.
“We stand ready to take the necessary measures, including supporting global energy supplies, such as releasing stockpiles,” G7 finance ministers said in a joint statement. they said.
IEA Director Fatih Birol said that Japanese Finance Minister Satsuki Katayama, whose country has one of the largest oil stocks in the world, is pushing for the release of reserves.
IEA member countries are net oil importers who are required to keep at least 90 days of oil imports in stock.
The IEA coordinated the largest mass evacuation in its history in 2022, when its members released more than 180 million barrels of oil following Russia’s invasion of Ukraine.
IEA members hold public emergency oil stocks of more than 1.2 billion barrels, and 600 million barrels of industrial stock are held under government obligation.
British Chancellor of the Exchequer Rachel Reeves said she was ready to support a “coordinated release” of international oil reserves to cushion the economic shock of the crisis and called for action to “guarantee the safety of ships passing through the Strait of Hormuz”.
French President Emmanuel Macron said energy ministers would discuss the situation on the sidelines of the nuclear summit in Paris on Tuesday.
with PA
