G7 ready to act on oil surge but holds off tapping reserves

G7 nations said on Monday ‌they were prepared to implement "necessary measures" in response to surging global oil prices, but stopped short of committing to release emergency reserves, despite crude prices surpassing $119 a barrel amid the US-Israel war on Iran, Report informs via Reuters.

"We are not there yet," French Finance Minister ​Roland Lescure told reporters in Brussels, after hosting a teleconference meeting of G7 finance ministers.

"What we've agreed upon is to ​use any necessary tools if need be to stabilize the market, including the potential ⁠release of necessary stockpiles."

Oil prices hit their highest levels since mid‑2022 on Monday, propelled by fears ​of prolonged shipping disruption and reduced output from some major producers wary of the conflict escalating.

A G7 official ​told Reuters there was "broad consensus" not to release reserves at this stage. "It was not that someone was against, it's just about timing. More analysis is needed," the official said, adding that a final decision would fall to G7 leaders.

Lescure, whose ​country holds the G7 presidency this year, said there were currently no supply problems in either Europe ​or the United States.

Western economies coordinate their strategic oil stockpiles through the Paris-based International Energy Agency, which was formed ‌after the ⁠1970s oil crisis.

"We stand ready to take necessary measures, including to support global supply of energy such as stockpile release," G7 finance ministers said in a joint statement.

IEA director, Fatih Birol, pushed for a release of the reserves, said Japanese Finance Minister Satsuki Katayama, whose country ​holds one of the world's ​largest oil stockpiles

IEA member ⁠countries are net oil importers who are required to keep at least 90 days' worth of oil imports in stock.

The IEA coordinated the largest collective release ​in its history in 2022, when members freed more than 180 million barrels of oil after Russia's invasion of ​Ukraine.

IEA members ⁠hold more than 1.2 billion barrels of public emergency oil stocks and a further 600 million barrels of industry stocks are held under government obligation.