G7 holds off oil reserve release pending analysis

During a telephone conference, energy ministers from the G7 countries refrained from deciding on a release of strategic oil reserves. However, they asked the International Energy Agency (IEA) to prepare an assessment of the situation and scenarios for possible market intervention.

The IEA subsequently announced that it would convene an extraordinary meeting of member states to analyse the situation in detail.

French Finance Minister Roland Lescure said after the meeting that the G7 countries were prepared to take measures to stabilise the energy market. According to him, they asked the IEA to prepare scenarios for a possible release of oil reserves so they would be ready to act if necessary.

Oil prices fell by about seven per cent on Tuesday after US President Donald Trump said the war in the Middle East could soon be over. Previously, oil prices had reached a more than three-year high.

At the same time, European governments are expressing concern about a possible repeat of an energy crisis similar to that of 2022 after Russia’s invasion of Ukraine, when a sharp rise in energy prices led to the closure of some industrial enterprises.

European Commission President Ursula von der Leyen warned that Europe is heavily dependent on fossil fuel imports, which puts it at a disadvantage compared with other regions. According to European Union data, the bloc imports more than 90 per cent of its oil and about 80 per cent of its natural gas.

(reuters, max)