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G7 Ministers to Discuss Emergency Oil Reserve Release Amid Price Surge

G7 finance ministers will hold an emergency call to discuss a coordinated release of emergency petroleum reserves as oil prices surge. The talks, involving the IEA's executive director, will focus on the impact of conflict on global energy markets. A proposal suggests releasing 300-400 million barrels from strategic stockpiles held by IEA member countries. This would be the sixth such coordinated action since the IEA's founding, following a release in 2022 after Russia's invasion of Ukraine.

Key Points: G7 to Discuss Coordinated Oil Reserve Release as Prices Soar

  • Emergency G7 ministerial call Monday
  • Coordinated oil reserve release proposed
  • Focus on war's impact on energy markets
  • Potential release of 300-400 million barrels
  • IEA members required to hold strategic reserves
2 min read

G7 ministers to discuss coordinated emergency oil reserve release amid price hike: Report

G7 finance ministers will hold emergency talks on a coordinated release of emergency petroleum stocks to stabilize markets amid surging oil prices.

"ready to act to support the stability of oil markets. - IEA document"

New Delhi, March 9

Finance ministers from the Group of Seven will discuss a possible coordinated release of emergency petroleum reserves during a call on Monday as oil prices surge following the conflict in the Gulf, a report has said.

The ministers are expected to hold the emergency discussion at 8:30 am New York time (around 7 pm local time) alongside Fatih Birol, executive director of the International Energy Agency (IEA), according to people familiar with the matter, the Financial Times reported.

The talks will focus on the impact of the war involving Iran on global energy markets. Three G7 countries, including the United States, have so far expressed support for a proposal to release oil from strategic reserves, people familiar with the discussions told the report.

The report also stated that officials said some US policymakers believe a coordinated release of about 300 million to 400 million barrels could be appropriate.

That would represent roughly 25 to 30 per cent of the 1.2 billion barrels currently held in strategic reserves by IEA member countries, according to The Financial Times.

Emergency petroleum stockpiles were established following the creation of the IEA in 1974 after the Arab oil embargo caused global fuel shortages and sharp price increases.

IEA members are required to maintain strategic reserves as part of a collective system designed to respond to severe disruptions in oil supply.

There have been five coordinated releases of emergency oil stocks by IEA member countries since the organisation was established, with the most recent intervention occurring in 2022 after the Russian invasion of Ukraine triggered a surge in energy prices.

Ahead of Monday's meeting, the IEA held an emergency discussion last week to examine possible responses to the emerging supply crisis, according to the Financial Times.

A document prepared for the meeting stated that the IEA stood "ready to act to support the stability of oil markets."

- IANS

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Reader Comments

P
Priya S
While this might help in the short term, we need long-term solutions. India should double down on its renewable energy targets. Every conflict in the Gulf reminds us how dependent we are. Solar and wind are the future for energy security. 🌞
R
Rohit P
Good step, but will the benefit actually reach us? Often, global prices fall but our fuel prices remain stubbornly high due to high taxes. The central and state governments need to reduce excise and VAT when such opportunities arise.
A
Aman W
Releasing 300-400 million barrels is a significant amount. It shows how serious the situation is. The last release was for Ukraine war, now this. Hope it brings down prices before it impacts everything from transport to food costs here.
S
Sarah B
As someone living in India, I see the direct impact of these global events on local markets. It's a reminder of how interconnected the world is. A coordinated response is necessary, but I respectfully think more focus should be on de-escalating the conflict itself, not just managing its symptoms.
K
Karthik V
Strategic reserves are for emergencies, and this qualifies. But we must also think about our own reserves. Is India's strategic petroleum reserve adequate? We should increase our capacity to buffer against such shocks. Jai Hind!

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