Post by : Shakul

Finance ministers from the Group of Seven (G7) and officials from the International Energy Agency (IEA) are urging a coordinated release of emergency oil reserves as global crude prices climb amid ongoing geopolitical tensions.

During an online meeting Monday, representatives discussed the possibility of drawing down strategic petroleum stocks in a coordinated manner to help stabilise global energy markets. Japanese Finance Minister Satsuki Katayama told reporters that the IEA had called on member countries to undertake the joint release and that G7 nations agreed to closely monitor developments in the energy markets and take necessary measures to support global supply.

The discussions also involved representatives from the World Bank, the International Monetary Fund and the Organisation for Economic Co-operation and Development. A meeting of G7 energy ministers is expected soon to consider the next steps in responses to market volatility.

Oil prices have reached their highest levels in years, partly due to supply cuts by major producers and ongoing disruptions related to the war in the Middle East. Brent crude briefly traded near $120 per barrel before settling lower, heightening pressure on consumers and policymakers.

Japan, which relies on the Middle East for roughly 95% of its crude imports, holds one of the world’s largest strategic oil reserves. A coordinated release could mirror past interventions; the IEA’s emergency reserve system has been tapped collectively during major crises, including in response to the Russian invasion of Ukraine.

French Finance Minister Roland Lescure said the bloc had not yet agreed on a final decision to release stockpiles but reaffirmed that G7 countries stand ready to deploy measures, including emergency reserve releases, if conditions worsen.

The proposal reflects broader concerns about oil market stability and global economic growth as supply chain risks and geopolitical uncertainties persist.

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