New Delhi, March 9 Finance ministers from the Group of Seven (G7) will discuss a possible coordinated release of emergency petroleum reserves during a call on Monday as oil prices surge following the conflict in the Gulf, a report has said.
The ministers are expected to hold the emergency discussion at 8:30 am New York time (around 7 pm local time) alongside Fatih Birol, executive director of the International Energy Agency (IEA), according to people familiar with the matter, the Financial Times reported.
The talks will focus on the impact of the war involving Iran on global energy markets. Three G7 countries, including the United States, have so far expressed support for a proposal to release oil from strategic reserves, people familiar with the discussions told the report.
The report also stated that officials said some US policymakers believe a coordinated release of about 300 million to 400 million barrels could be appropriate.
That would represent roughly 25 to 30 per cent of the 1.2 billion barrels currently held in strategic reserves by IEA member countries, according to The Financial Times.
Emergency petroleum stockpiles were established following the creation of the IEA in 1974 after the Arab oil embargo caused global fuel shortages and sharp price increases.
IEA members are required to maintain strategic reserves as part of a collective system designed to respond to severe disruptions in oil supply.
There have been five coordinated releases of emergency oil stocks by IEA member countries since the organisation was established, with the most recent intervention occurring in 2022 after the Russian invasion of Ukraine triggered a surge in energy prices.
Ahead of Monday’s meeting, the IEA held an emergency discussion last week to examine possible responses to the emerging supply crisis, according to the Financial Times.
A document prepared for the meeting stated that the IEA stood “ready to act to support the stability of oil markets.”
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