G7 to Discuss Joint Release of Emergency Oil Reserves: Report
G7 finance ministers are preparing to discuss the release of emergency oil reserves, according to reports, after the US-Israel war with Iran sent the price of crude above $100 (£75) for the first time since 2022.
The ministers will discuss the release of the reserves in a call coordinated by the International Energy Agency (IEA), according to reports.
The emergency meeting would take place at 8.30am New York time to discuss the impact of the Iran war, according to reports.
Three G7 countries, including the US, have so far reportedly expressed support for the release of the emergency reserves, which are held by the IEA’s 32 member countries across the globe.
The IEA holds strategic reserves of petroleum as part of an emergency system designed to help countries withstand oil price crises. US officials believe a joint release in the range of 300m to 400m barrels would be appropriate, which would reportedly represent 25percent to 35percent of the 1.2bn barrels in reserve.
The EU’s oil and gas supply coordination groups would also meet on Thursday, a spokesperson said, as they monitor the impact of the conflict on the bloc’s oil supplies. EU countries are required to hold oil stocks covering 90 days’ worth of consumption.
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The UK month-ahead gas price jumped by 19percent to 163p a therm on Monday morning. The continental European month-ahead benchmark is up 16percent at €62 a megawatt hour.
Oil prices rose and stock markets in Asia, the UK and mainland Europe fell on Monday morning after continued violence in the Middle East fed investor concerns around a supply crunch, pushing Brent crude to its highest level in four years and triggering a stock market sell-off.
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UK’s blue-chip FTSE 100 index falling by 1.9percent. Germany’s Dax dropped by almost 1percent, while the French Cac 40 fell 0.7percent. The Stoxx Europe 600, which tracks the biggest companies across the continent, fell by 1.5percent, erasing all of its gains in the year so far.
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At least five energy sites in and around Tehran were hit by strikes. Kuwait’s national oil company also announced a precautionary production cut amid retaliatory attacks by Iran.
The strait of Hormuz, through which about a fifth of global oil and seaborne gas tankers typically pass, has been in effect closed for a week.