Record release of emergency oil reserves planned as prices surge
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The G7 group of nations welcomes the idea of releasing oil in response to the surge in prices since the US-Israel war with Iran began
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Record release of emergency oil reserves planned as prices surge 14 minutes ago Share Save Mitchell Labiak Business reporter Share Save G7 nations have said they would support the collective release of oil from their reserves to tackle soaring prices since the start of the US-Israel war with Iran. The group of countries has been meeting with the International Energy Agency , which has asked member states to make their biggest-ever intervention in the oil market. The conflict has caused oil exports through the Strait of Hormuz — which carries a fifth of global oil supplies — to virtually stop and production in the region to slump. Prices have jumped since the conflict started but stabilised following reports that oil could be released, though experts say the move would only be a short-term solution. The IEA has asked its 32 members to release 400 million barrels of oil, more than double the amount it released following Russia's full-scale invasion of Ukraine in early 2022, according to Germany's economy minister Katherina Reiche. All 32 members would need to agree to a release for it to go ahead. Reiche said Germany will "comply with [the IEA's request] and contribute to it, as Germany stands behind the IEA's most important principle of mutual solidarity". Earlier on Wednesday, Austria and Japan confirmed they will also release oil from their stockpiles. According to reports, the IEA will confirm a release of 400 million barrels from its members' reserves on Wednesday afternoon. However, that would only amount to around three or four days' worth of global supply or roughly a fortnight's worth of what would normally be shipped out of the Strait of Hormuz. Following a meeting with the IEA on Wednesday, G7 energy ministers said: "In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves." The IEA's member and associate countries represent two thirds of global energy production and 80% of consumpti...
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