The Group of Seven (G7) finance ministers convened an emergency meeting on Monday (March 9) to discuss a plan to release joint strategic oil reserves in response to the surge in oil prices caused by the conflict in the Middle East.
According to CNN, on Monday, when asked by the media about the European Commission’s views on releasing oil reserves to calm the soaring oil prices, the Commission spokesperson stated, “The G7 will discuss this today, and they will decide on the next steps.”
When asked a similar question, a spokesperson for the German Ministry of Finance said, “The G7 finance ministers will hold a meeting today. The meeting will also discuss the economic consequences of the war in Iran.”
The Financial Times first reported this news. Sources disclosed that three G7 countries, including the United States, have expressed support for this plan.
The 32 member countries of the International Energy Agency (IEA) possess strategic oil reserves, which are part of a collective emergency mechanism designed to address oil price crises.
An insider told the Financial Times that some U.S. officials believe that jointly releasing 300 to 400 million barrels of oil – approximately 25% to 30% of the 1.2 billion barrel oil reserves – is appropriate.
The Middle East conflict poses an increasingly serious threat to energy facilities and transportation routes. China, India, South Korea, Japan, Germany, Italy, and Spain are among the world’s largest crude oil importers and are highly vulnerable to the impacts of oil price fluctuations.
On Sunday, oil prices surged to over $100 per barrel, marking the first time since the 2022 Russian invasion of Ukraine that prices breached this threshold. On Monday, international benchmark Brent crude oil surged by nearly 30% during Asian trading hours, reaching $119.50 per barrel, but prices retreated to around $102 per barrel after news of the G7 meeting, representing a 10% increase. The U.S. benchmark West Texas Intermediate (WTI) crude briefly rose by 31% to $119.48 per barrel before falling to around $100 per barrel, with a 10% increase.