G7 to discuss joint release of emergency oil reserves

G7 finance ministers are set to meet on Monday to talk about a possible joint release of oil from reserves, organized by the International Energy Agency (IEA). This emergency meeting aims to address the rising oil prices due to the conflict in the Gulf. The call will take place at 8:30 AM New York time and will include IEA executive director Fatih Birol, as well as other officials familiar with the matter, including a senior G7 representative. So far, three G7 nations, including the United States, have shown support for this plan. The IEA has 32 member countries that maintain strategic reserves as part of a system designed to respond to oil price crises. One individual mentioned that some officials in the US think a joint release of between 300 million and 400 million barrels—about 25 to 30 percent of the 1.2 billion barrels in reserve—would be suitable. This meeting comes as US President Donald Trump is under pressure to stop the rapid increase in crude oil prices since the war began. By Sunday, the average petrol price in the US reached $3.45 a gallon, up from $2.98 a week earlier, with expectations that prices will continue to rise unless corrective measures are taken. The recent spike in oil prices has caused global concerns, threatening to create an inflation surge that could harm economic growth worldwide. Countries such as China, India, South Korea, Japan, Germany, Italy, and Spain are significant crude importers, making them particularly vulnerable to price fluctuations. On Monday, Brent crude, the international standard, surged by 24 percent during Asian trading, reaching $116.71 a barrel, but later dropped to about $110.85, still up nearly 19 percent after news of the G7 meeting. West Texas Intermediate, a US benchmark, climbed 28 percent to $116.45 before settling around $108, which is nearly 19 percent higher. The emergency oil stockpiles were established as part of the IEA's creation in 1974, following the Arab oil embargo that led to soaring prices and severe fuel shortages in the western world, including Sri Lanka.