G7 Considers Emergency Oil Release as Prices Soar
The Group of Seven nations are set to convene on Monday to deliberate on a coordinated release of petroleum from strategic reserves, facilitated by the International Energy Agency, in response to rising global crude prices driven by the conflict in West Asia, according to reports. The report further stated that the United States and two other member nations have voiced their backing for such a release. The G7 comprises Britain, Canada, France, Germany, Italy, Japan, and the US. Approximately 1.2 billion barrels of oil are stored in strategic reserves by the 32 members of the IEA, established under a collective emergency mechanism designed to address oil price shocks. The US and Japan together represent approximately 700 million barrels of this total. A source indicates that certain US officials think a coordinated release of 300–400 million barrels may be suitable to address the supply crunch and manage prices.
This follows a significant increase in oil prices worldwide, which reached $116.71 a barrel on Monday, before experiencing a slight decline following the announcement of the G7 meeting. Monday’s meeting follows an emergency gathering by the IEA last week, which stated it is “ready to act to support the stability of oil markets,” according to the report. The organisation also stated that the stock could sustain nearly one month of total oil demand in IEA countries and exceed 140 days of net imports.
Oil prices surged following the strikes launched by the US and Israel on Iran on February 28, which prompted retaliatory attacks from Tehran on Israeli territory and US military bases throughout West Asia. The escalation has interrupted oil shipments from the region and heightened concerns about a wider supply shock. The G7 meeting occurs amid mounting pressure on US President Donald Trump from American leaders and allies to manage prices effectively. The report noted that this follows the statement from his administration last week, indicating that a release from the strategic petroleum reserves would not be necessary to stabilize markets.
India does not hold a permanent seat in the G7. However, it took part in the ‘Outreach Session’ of the G7 Summit that took place in Canada last year. It is also not a full member of the IEA; instead, it holds the status of an associate country. Nonetheless, it ranks among the largest importers of crude oil globally, alongside nations like China, South Korea, Japan, Germany, Italy, and Spain.
