G7 countries are not yet ready to release strategic oil reserves.
“Elchi” reports, citing AFP, that French Finance Minister Roland Lescure stated this to journalists after talks with his counterparts regarding the situation in the Middle East.
“We are not ready yet, but we have agreed to use any necessary tools, including the potential release of necessary reserves if needed, to stabilize the market,” he said.
Fatih Birol, head of the International Energy Agency (IEA), noted that in addition to transit problems through the Strait of Hormuz, oil production has also been significantly reduced. Currently, IEA member countries have at their disposal more than 1.2 billion barrels of strategic emergency oil, as well as 600 million barrels of industrial reserves, he said.
Strategic oil reserves were created by the IEA in 1974 after the Arab oil embargo, which led to rising oil prices and fuel shortages. These reserves are intended to enable major oil-consuming countries to react to significant energy disruptions. Since its establishment, IEA members have released oil reserves five times, with the last two instances occurring in 2022 against the backdrop of the Russia-Ukraine war.
The US and Israel launched military operations against Iran on February 28. On March 6, for the first time in two years, the price of Brent crude oil exceeded $89 per barrel. On March 3, the IEA held an emergency meeting to consider options for resolving the looming oil supply crisis. A document prepared for the meeting states that the IEA is ready to take action to maintain the stability of oil markets.