They said they are ready to take “necessary measures” to support global energy supply after the US–Israel war with Iran sent oil prices surging, according to global newswires.
G7 finance ministers have agreed during a virtual meeting with the International Energy Agency (IEA) not to release their respective strategic crude reserves.
They agreed to take ‘necessary’ steps to support the global supply of energy after the US-Israel war with Iran sent oil prices surging.
IEA head Fatih Birol said last week that there are no plans for emergency releases of oil from joint stocks.
The G7 comprises Canada, France, Germany, Italy, Japan, United Kingdom and the United States.
Experts noted that a large release from strategic reserves could negatively affect global oil balances, as the market is still reporting surpluses.
“In addition to the challenges of transit through the Strait of Hormuz, a substantial amount of oil production has been curtailed. This is creating significant and growing risks for the market,” IEA head Fatih Birol said during the meeting.
“IEA member countries currently hold over 1.2 billion barrels of public emergency oil stocks, with a further 600 million barrels of industry stocks held under government obligation,” he added.
Birol had also announced last week, after meeting Ursula von der Leyen, president of the European Commission, that there were no plans for emergency releases from joint oil stocks, noting that supplies remain ample and the market currently has a surplus.
Fibre2Fashion News Desk (DS)
