G7 to discuss emergency oil reserve release as prices surge - report

Finance ministers from the Group of Seven (G7) are set to hold an emergency discussion on Monday about a possible coordinated release of oil from strategic reserves, as global energy markets react to the war involving Iran, the United States, and Israel. The meeting will focus on stabilizing prices after a sharp surge in crude oil linked to supply disruptions in the Gulf, according to a report by The Financial Times. 

The ministers are expected to hold a call at 8:30 AM New York time with International Energy Agency executive director Fatih Birol to discuss the impact of the conflict on global energy markets, according to people familiar with the matter, including a senior G7 official.

At least three G7 countries, including the United States, have expressed support for the idea of a coordinated release, according to people familiar with the talks. Officials are considering a release of roughly 300 million to 400 million barrels from strategic reserves. That would represent about 25 percent to 30 percent of the approximately 1.2 billion barrels held within the system. 

The reserves are held by the 32 member countries of the International Energy Agency as part of a collective emergency system designed to respond to oil supply shocks and major price disruptions. Governments maintain the stockpiles so large oil-consuming nations can quickly inject additional supply into the market during crises. 

IEA members and the industry collectively hold more than 1.24 billion barrels in public reserves, along with roughly 600 million barrels in additional industry stocks that could be made available if needed. According to an internal document prepared for discussions, these supplies could cover nearly one month of total oil demand across IEA countries. 

The IEA has coordinated collective releases five times since it was created in 1974, including two actions in 2022 after Russia’s invasion of Ukraine triggered a surge in global oil prices.