According to a report by the Financial Times (FT), the Group of Seven (G7) nations are discussing a potential large-scale release of oil from emergency reserves. The move, which could be coordinated by the International Energy Agency (IEA), follows a sharp upward swing in oil prices triggered by supply constraints and growing geopolitical tensions.
Representatives from the G7 are evaluating a combined release from their strategic reserves, with a potential volume between 300 million and 400 million barrels under review. Of the G7 nations, three, including the United States, have signaled early backing for such joint action in response to surging energy prices.
Talks on the matter are expected to involve G7 finance ministers and the IEA’s Executive Director, who are set to assess the effect of the ongoing conflict involving Iran on global oil markets. Current G7 oil reserves are about 1.2 billion barrels, which suggests that the proposed release would represent a substantial share of their collective holdings.
The potential intervention follows a period when oil prices surged more than 25%, reaching highs last seen in mid-2022, after key exporters reduced output and concerns grew over sustained disruptions in global shipping due to the escalating conflict in the Middle East.
Notably, oil prices were traded below $108 a barrel following the report.
