G7 nations move to curb soaring oil prices

G7 nations have said they would support the collective release of oil from their reserves to tackle soaring prices since the start of the US-Israel war with Iran.

The group of countries has been meeting with the International Energy Agency (IEA), which is reported to be readying its biggest ever intervention in the oil market yesterday afternoon.

The conflict has caused oil exports through the vital Strait of Hormuz, which carries a fifth of global oil supplies, to virtually stop and production in the region to slump.

Prices have jumped since the conflict started but stabilised following reports that oil could be released from countries’ stockpiles though some experts say the move would only be a short-term solution.

According to reports, the IEA could release 300 to 400 million barrels of oil, more than double the amount it released following Russia’s full-scale invasion of Ukraine in early 2022.

However, the reported figure would only amount to around three or four days’ worth of global supply or roughly a fortnight’s worth of what would normally be shipped out of the Strait of Hormuz.

Following a meeting with the IEA yesterday, G7 energy ministers said: “In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves.”

All IEA member countries are required to keep 90 days’ worth of their nation’s oil use in reserve in case of global disruption.

—BBC

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