G7 Finance Ministers: "Prepared to Release Oil Reserves... Not at That Stage Yet"

The Group of Seven (G7) discussed the possibility of releasing strategic oil reserves to stabilize international oil prices, but decided not to proceed with a release at this time.

On March 9 (local time), G7 finance ministers held a virtual meeting to discuss measures in response to the surge in oil prices following the Middle East war.

Reuters Yonhap News

Due to the aftermath of the war between the United States and Israel and Iran, the number of oil tankers passing through the Strait of Hormuz has sharply decreased, and oil-producing countries in the Gulf region have cut production, causing international oil prices to soar to as high as 119 dollars at one point during the day.

After the meeting, the ministers issued a statement saying, "We will continue to closely monitor the energy market situation and changes, and will hold meetings for information exchange and coordination among G7 members and international partners as needed," adding, "We are prepared to take necessary measures, including the release of oil reserves."

Regarding the meeting, French Minister for the Economy Roland Lescure, whose country currently holds the G7 presidency, stated, "We are ready to take all necessary measures, including the use of strategic reserves, but we have not yet reached that stage." He added, "There are no issues with oil or gas supplies in the United States or Europe."

Lars Klingbeil, German Minister of Finance, emphasized the importance of close agreement within the G7 before releasing reserves, saying, "Now is not the right time, but Germany is willing to participate in such a release in a cooperative manner at the appropriate time."

It was reported that representatives from the International Energy Agency (IEA), the Organisation for Economic Co-operation and Development (OECD), and the International Monetary Fund (IMF) also attended the virtual meeting.

The IEA requires its member countries to maintain strategic oil reserves equivalent to at least 90 days of net oil imports. This requirement was introduced when the IEA was established in 1974 following the 1973 oil crisis. To date, IEA member countries have jointly released strategic reserves five times. The most recent two releases were in 2022, when oil prices soared after Russia's invasion of Ukraine.

According to internal IEA documents, member countries currently hold more than 1.2 billion barrels of emergency reserves. In addition, 600 million barrels of industrial reserves have been secured under government mandates. In theory, this covers more than 140 days of imports. Some US officials reportedly suggested releasing about 300 to 400 million barrels, which corresponds to 25-30% of the 1.2 billion barrels in reserves.

Amid soaring oil prices, the possibility of holding a G7 summit is also being discussed. According to AFP, French President Emmanuel Macron stated during a visit to Cyprus that "G7 leaders are considering holding a meeting this week to coordinate joint responses regarding energy issues."

The European Union (EU) will also hold a meeting to discuss energy measures. According to Bloomberg, Valdis Dombrovskis, the European Commissioner for the Economy, said, "We are reviewing several possible actions, and these will be discussed with ministers today," adding, "One option is to release oil reserves in order to secure additional oil supplies during this period of supply disruption."

This content was produced with the assistance of AI translation services.