Releasing strategic oil reserves to stabilise energy markets shaken by the Middle East crisis will be among the options discussed at a meeting of G7 finance ministers on Monday, a French government source said.
The Financial Times earlier reported that the ministers were expected to consider a coordinated release of strategic oil reserves organised by the International Energy Agency (IEA).
France’s finance ministry said the meeting, scheduled for 1:30 pm Paris time (1230 GMT), would “review the situation in the Gulf from an economic perspective” and assess “the events of recent days.”
“The use of strategic reserves is one of the options under consideration,” the government source said.
France currently holds the rotating presidency of the Group of Seven advanced economies, which also includes Canada, Germany, Italy, Japan, the United Kingdom and the United States.
Asian stock markets tumbled on Monday while oil prices surged 30 percent amid fears of supply disruptions in the Middle East, as the US-Israeli war with Iran entered its second week with no sign of easing.
The spike in oil prices eased somewhat after the Financial Times report, which said three G7 countries including the United States had so far backed the proposal.
US President Donald Trump said the surge in prices was a “small price to pay” to eliminate Iran’s nuclear threat, repeating the White House’s insistence that the increase would be temporary.
The IEA was created to coordinate responses to major supply disruptions following the 1973 oil crisis.
To ensure energy security, the agency requires its members to hold emergency oil stocks equivalent to at least 90 days of net oil imports. These reserves are held either directly by governments or by private companies.
AFP
