Oil prices on Western markets are approaching the $100-a-barrel mark for the first time since 2022. This has raised concerns about the impact of the conflict in the Middle East on the global economy. G7 finance ministers therefore discussed ways to stabilise the market at an extraordinary meeting, including the possible release of strategic oil reserves. They have not yet reached an agreement on such a move.
Following an extraordinary meeting called in response to a sharp rise in oil prices, the G7 said it was ready to take “necessary measures” to limit the economic impact of the conflict in the Middle East. Oil prices have exceeded $100 a barrel for the first time since 2022, raising fears of further energy price increases and consequences for the global economy.
G7 finance ministers met via videoconference on Monday. After the meeting, they said they would continue to monitor the situation closely but had not yet agreed to an immediate release of emergency oil reserves. These are considered one of the main tools for stabilising the global oil market in the event of a crisis.
In a joint statement, the ministers said they had discussed developments in the conflict in the Middle East, its impact on regional stability and global financial markets. The security of international trade routes, which are essential for transporting oil and other energy commodities, was also a key topic.
“We will continue to monitor the situation and developments in energy markets closely, and if necessary, we will meet again to coordinate our response within the G7 and with other international partners,” the ministers said in a joint statement.
The G7 countries also said they were prepared to take further steps to support global energy supplies. Possible measures include a coordinated release of strategic oil reserves held by member countries of the International Energy Agency (IEA).
French Finance Minister Roland Lescure, however, said countries were not yet at a point where they could agree on such a move. However, media reports say some countries, including the United States, support the possibility of releasing reserves.
EU member states are required to hold strategic oil stocks for such cases
Strategic oil stocks coordinated by the International Energy Agency amount to approximately 1.2 billion barrels. They have been used in the past, for example, during the 2011 oil crisis and after Russia’s invasion of Ukraine in 2022. Some estimates suggest that a coordinated release could amount to hundreds of millions of barrels, helping to calm the market and reduce price fluctuations.
The European Union is also monitoring the situation. The EU’s oil and gas coordination groups are due to meet to assess the conflict’s impact on energy supplies to Europe. Under EU legislation, member states are required to hold strategic oil stocks equivalent to at least 90 days of average consumption.
According to the Administration of State Material Reserves, the Czech Republic also complies with this requirement. Oil flows into the country mainly via the Druzhba and IKL pipelines, the latter of which is connected to the Transalpine Pipeline (TAL), running from the Italian port of Trieste, says MERO ČR. According to the International Energy Agency, the Czech Republic consumes approximately 200 thousand barrels of oil per day, equivalent to around 10 million tonnes of oil per year.
