G7 nations hold off on oil stock release as Iran conflict lifts prices

Kitco Media
By Reuters
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Reuters
G7 nations hold off on oil stock release as Iran conflict lifts prices teaser image

BRUSSELS, March 9 (Reuters) - 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.

"What we've agreed upon is ⁠to use any necessary tools if need be to stabilize 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 U.S.-Israeli war with Iran.

Lescure said there were currently no supply problems in either Europe or ​the United States.

Western economies coordinate 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.

BIGGEST ‌COLLECTIVE ⁠EIA RELEASE WAS IN 2022

EIA 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 coordinated 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 over 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.

Reporting by Alexander Chituc and Gianluca Lo Nostro and Leigh Thomas; Additional reporting ​by America Hernandez and Makiko Yamazaki; Editing by Sharon Singleton, Tomasz Janowski and Bernadette Baum

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