G7 energy ministers stop short of strategic reserve decision, ask IEA to study options
IEA to assess oil reserve release options
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[BRUSSELS/PARIS] Energy ministers from the G7 group of countries stopped short of deciding on the release of strategic oil reserves in a call on Tuesday (Mar 10) and instead asked the International Energy Agency (IEA) to assess the situation before acting.
The IEA said it was now convening an extraordinary meeting of its member states to deliver an in-depth assessment of the situation.
“Everyone is willing to take measures to stabilise the market, including the US,” French Finance Minister Roland Lescure told journalists after G7 energy ministers discussed how to tackle soaring energy prices due to the war in Iran.
“We have asked the IEA to elaborate scenarios for a potential oil stock release, we need to be ready to act at any moment,” he added.
After soaring to a more than three-year high in the previous session, oil prices plummeted 7 per cent on Tuesday as US President Donald Trump predicted the war in the Middle East could end soon, easing concerns about prolonged disruptions to oil supplies.
EU leaders will discuss competitiveness, including energy prices, on a call with German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni, Belgian Prime Minister Bart De Wever and others.
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European governments are on edge about the prospect of a repeat of the energy crisis they faced in 2022, when prices surged to record peaks, forcing some industries to shutter, after Russia invaded Ukraine.
Vulnerable Europe
Even before the Iran crisis, European energy prices were typically higher than those in the US and China. European Commission chief Ursula von der Leyen is due to propose measures to tackle the politically sensitive issue at an EU summit next week.
“For fossil fuels we are completely dependent on expensive and volatile imports, putting us at a structural disadvantage to other regions. The current Middle East crisis gives a stark reminder of the vulnerabilities this creates,” von der Leyen said, adding that the reduction in nuclear energy had been a strategic mistake in Europe.
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The EU imports more than 90 per cent of its oil and around 80 per cent of its gas.
The G7 comprises the US, Canada, Japan, Italy, Britain, Germany and France. REUTERS
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