New Delhi: Finance ministers from the Group of Seven (G7) are set to discuss a possible coordinated release of emergency petroleum reserves during a call on Monday as global oil prices climb following the conflict in the Gulf, according to a media report.
The emergency discussion is expected to take place at 8:30 a.m. New York time (around 7 p.m. local time) and will include Fatih Birol, Executive Director of the International Energy Agency (IEA), the Financial Times reported, citing people familiar with the matter.
The talks will focus on the impact of the war involving Iran on global energy markets. So far, three G7 countries, including the United States, have expressed support for a proposal to release oil from strategic reserves, the report said.
According to officials cited in the report, some policymakers in the United States believe a coordinated release of around 300 million to 400 million barrels of oil could help stabilise markets.
Such a move would represent about 25 to 30 per cent of the nearly 1.2 billion barrels currently held in strategic reserves by member countries of the IEA.
Emergency petroleum reserves were first established after the formation of the IEA in 1974, following the Arab oil embargo that caused widespread fuel shortages and a sharp spike in global oil prices.
Under the IEA framework, member countries are required to maintain strategic reserves as part of a collective system designed to respond to major disruptions in oil supply.
Since the agency’s creation, there have been five coordinated releases of emergency oil stocks by IEA members. The most recent took place in 2022 after Russia’s invasion of Ukraine triggered a surge in global energy prices.
Ahead of Monday’s call, the IEA held an emergency meeting last week to assess potential responses to the emerging supply crisis. According to a document prepared for the discussion, the agency said it stands “ready to act to support the stability of oil markets.”
With inputs from IANS