France Says G-7 Is Not There Yet on Releasing Oil Stockpiles

0b)f{946rb]7kv4htc67n9of_media_dl_1.png ICE, NymexArticle content(Bloomberg) — Group of Seven finance ministers said they were ready to take any steps needed to support global energy supply, including releasing strategic oil reserves — although the group isn’t at the point of doing so yet.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“We will continue to closely monitor the situation and developments in the energy markets and will meet as needed to exchange information and to coordinate within the G-7 and with international partners,” the group said in a statement. “We stand ready to take necessary measures, including to support global supply of energy such as stockpile release.”Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentG-7 finance ministers held a virtual meeting on Monday to discuss the conflict in the Middle East, its impact for regional stability, global economic conditions, and financial markets, and the importance of secure trading routes. France, which holds the presidency, said the group was wasn’t yet at the point of organizing a release.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentBrent oil futures surged as much as 29% at one stage on Monday before sharply paring their gains when it emerged that the G-7 would discuss a possible stockpile release. Article contentThe heads of the International Monetary Fund, World Bank Group, Organisation for Economic Co-operation and Development, and International Energy Agency took part in the discussion.Article contentRoland Lescure, the finance minister of France said the group was “not there yet” in terms of a release, but that it was, in conjunction with the IEA, monitoring the situation closely.Article contentThe war has led to producing giants including Saudi Arabia, Kuwait, Iraq and the United Arab Emirates lowering their output and the effective closure of the Strait of Hormuz, the oil market’s most-important trade artery.Article contentArticle contentDevelopments over the past few days “convinced us to send very clear and firm messages and I hope very effective to reassure everyone,” Lescure said, adding that there is “no problem of supply of oil or gas in the US or Europe.”Article contentStock releases are normally coordinated by the IEA. After the meeting, the organization’s chief Fatih Birol said that the situation at Hormuz presents “significant and growing” risks to the oil market. On Friday, he emphasized how well supplied it was.Article contentCoordinated releases of strategic stockpiles have been carried out only five times before, including twice in response to Russia’s invasion of Ukraine in 2022. Before that, reserves were tapped following supply disruptions in Libya, Hurricane Katrina, and during the first Gulf War.Article contentConsumers across the world are already feeling the impact of the disruptions in the Middle East, with long queues forming at filling stations, and a surge in jet-fuel prices pushing up the cost of air tickets.Article contentThe current situation is among the most severe disruptions in the history of the oil market because 20% of the world’s oil and a similar portion of liquefied natural gas can’t pass through Hormuz. Article contentJoaquim Miranda Sarmento, Portugal’s finance minister, cautioned it’s important to keep reserves for situations of low supply, “which is not the situation we are currently in.”Article content“We don’t have an oil supply problem at the moment,” he said. “The problem we have is with the price of oil markets.”Article contentArticle contentArticle content—With assistance from Jorge Valero, Kamil Kowalcze, James Regan, Max Ramsay and Nayla Razzouk.Article content(Updates with comment from IEA chief in ninth paragraph.)Article contentTrending Posthaste: How $100 oil could do Canada's economy more harm than good News Canadians blasé about CUSMA misunderstand the market risks Investor IMF urges preparation for 'unthinkable' amid Mideast conflict Economy Here are 5 things worried investors can do as the Iran war plays out Investor Subscriber only. G7 to discuss joint release of emergency oil reserves as crude hits $100 Subscriber only Financial Times Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: How $100 oil could do Canada's economy more harm than good News Canadians blasé about CUSMA misunderstand the market risks Investor IMF urges preparation for 'unthinkable' amid Mideast conflict Economy Here are 5 things worried investors can do as the Iran war plays out Investor Subscriber only. G7 to discuss joint release of emergency oil reserves as crude hits $100 Subscriber only Financial Times