French Finance Minister Roland Lescure on Monday said G7 countries have not yet made a decision n the potential release of emergency oil stocks in the wake of the US-Israel war on Iran.
“We are not there yet…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," Lescure told reporters in Brussels after an online G7 meeting of finance ministers.
He said the governments were following the situation and at present there were no supply problems in either Europe or the United States.
The remarks as the oil surged to more than $119 a barrel on Monday, hitting levels not seen since mid-2022, as some major producers cut supplies and fears of prolonged shipping disruption gripped the market due to the expanding US-Israeli war with Iran, Reuters reported.
TheMiddle East conflict, which began on February 28 withUS and Israeli strikes on Iran, has disrupted regional energy oil flows.
Meanwhile, a G7 official said there was a broad agreement among the G7 finance ministers not to release strategic oil reserves just yet.
Also See:How Crude Oil Prices Will Impact The Indian Economy?
Reuters quoted the official saying in a statement that they were ready to take “necessary measures" to support the global supply of energy, including the release of stockpiles, but stopped short of doing it now.
“There was broad consensus on this. “It was not that someone was against, it’s just about timing. More analysis is needed," the official said.
Crude prices have surged sharply since the conflict escalated in the Gulf region, raising concerns about a fresh inflation shock and risks to global economic growth.
Source: World News in news18.com, World Latest News, World News
