By Alexander Chituc and Gianluca Lo Nostro
Brussels — G7 countries have not yet decided whether to release emergency oil reserves as prices surge above $119 a barrel due to the Iran war, France’s finance minister said on Monday, adding that governments saw no immediate supply shortfall.
“We are not there yet,” Roland Lescure told reporters in Brussels after an online G7 meeting of finance ministers on Monday.
“What we’ve agreed on is to use any necessary tools if need be to stabilise the market, including the potential release of necessary stockpiles.”
Oil prices surged to more than $119 a barrel on Monday, hitting levels not seen since mid-2022, as some major producers cut supplies on fears of prolonged shipping disruption due to the US-Israeli war with Iran.
Lescure said there were currently no supply problems in either Europe or the US.
Western economies co-ordinate their strategic oil stockpiles through the Paris-based International Energy Agency, which was formed after the 1970s oil crisis and also provides research and data to members.
IEA director Fatih Birol pushed for a release of the reserves, said Japanese finance minister Satsuki Katayama, whose country holds one of the world’s largest oil stockpiles.
IEA member countries are net oil importers who are required to keep at least 90 days’ worth of oil imports in stock.
As recently as 2022, the IEA co-ordinated the largest collective release in its history, involving just over 180-million barrels of oil stocks in response to the market turmoil that followed Russia’s invasion of Ukraine.
IEA members hold more than 1.2-billion barrels of public emergency oil stocks, and a further 600-million barrels of industry stocks are held under government obligation.
French President Emmanuel Macron said that energy ministers would discuss the situation on Tuesday on the sidelines of a nuclear summit in Paris.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.