With Oil Prices Nearing $110, Macron to Convene the Group of Seven (G7) to Discuss Additional Strategic Reserve Releases

【Financial News New York = Special Correspondent Lee Byung-chul】  With international oil prices nearing $110 a barrel amid the prolonged war in the Middle East, the G7 has once again brought the option of releasing additional strategic oil reserves back to the table. This comes just six months after member countries of the International Energy Agency (IEA) decided in March to release a record 400 million barrels of reserves.
French President Emmanuel Macron said on the 18th, local time, that he would convene a G7 meeting to respond to the energy crisis stemming from the Middle East. Macron said, "I will convene the G7 to advance better coordination on stockpiles and strengthen cooperation on exports and production capacity." An additional release of strategic reserves and the easing of various supply restrictions are among the issues to be discussed.
The G7 is reconsidering its strategic-reserve option because oil prices are surging again as the war in the Middle East rattles global crude supply chains. Brent crude came close to $110 a barrel this week. Although prices have edged down, they remain well above $100. Supply concerns have intensified again, particularly after the key East-West pipeline linking Saudi Arabia's eastern oil fields with its western Red Sea export ports was attacked.
Earlier, IEA member countries decided in March to supply 400 million barrels of strategic reserves to the market after Iran effectively blockaded the Strait of Hormuz. This was the largest release in IEA history. Of that amount, 320 million barrels had been released by August. Much of the reserve oil released to the market so far came from the United States, while Europe still has comparatively more room to release refined fuels such as gasoline and diesel from its stockpiles.
Energy insecurity is not limited to crude oil. Macron plans to discuss natural-gas supply measures with the President of the European Commission. Europe is facing record-low gas storage levels ahead of winter. Macron emphasized a joint European response, saying, "Extraordinary times call for extraordinary measures."



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