FT: G7 countries to discuss releasing their emergency oil reserves to the market

The G7 countries will discuss the release of their emergency oil reserves to the market. It appears their "dark day" has already arrived.

The British newspaper The Financial Times reports this.

The G7 finance ministers and Fatih Birol, head of the International Energy Agency (IEA), which oversees hydrocarbon reserves, will discuss the potential joint use of oil reserves. Their emergency meeting is scheduled for today.

FT journalists claim that this idea is supported by at least three G7 countries. Washington, in particular, advocates releasing 300-400 million barrels, or up to 30 percent of existing reserves, onto the market. The entire reserve would cover the needs of the 32 IEA founding countries for almost a month, or more than 140 days of imported oil use.

This initiative is linked to the sharp rise in oil prices caused by the conflict in the Middle East, which has led to restrictions on shipping through the Strait of Hormuz. In some Gulf countries, crude oil storage facilities are already virtually full, and there is no way to export the crude. Kuwait's oil fields, for example, have already cut production for this reason.

Since military action against Iran was unleashed by Washington, US President Donald Trump is being pressured to take measures to stop the rise in oil prices, as it threatens grave consequences for the entire global economy.

Comments

[Vladimir Vladimirovich Vorontsov]

❝ G7 countries will discuss the release of their emergency oil reserves to the market. It looks like the "black day" has already arrived for them. ❞ —

— An optimist and a pessimist met.
Pessimist (sadly): "It can't get any worse."
Optimist (joyfully): "Let it be! Let it be!" ...

[Sydor Kovpak]

Now's the time to hit those reserves. But...

[topol717]

Quote: Sidor Kovpak

Now's the time to hit those reserves. But...

The market doesn't live on oil alone. And while there's oil in the lurch, someone wants to sell it at a higher price. With gas, things are a bit worse. UGS facilities around the world are almost empty.

[abrakadabre]

Things are a bit worse with gas. UGS facilities around the world are almost empty.

Not all... Ours are complete. And that's all we need to know.

[Vicente]

China has already refused to export its surplus, Russia has told the EU it's "free." Now, Europe's only hope is its own, since the Persians have thoroughly hampered the Middle East's oil and gas industries. What do they care? They have their main production facilities and even airfields underground...

[Hunter 2]

If only the Norwegians could carry out a couple more sabotage operations against their oil and gas complex... and Europe would howl!

[Vicente]

Yes, Norway and Romania are still extracting a little bit of something, but it's not enough, the ceiling builders are in trouble...

[hrych]

Fortunately or unfortunately, Russia can't save the EU and China simultaneously. Nor can it save them separately, by replacing the Persian Gulf. The EU needs to import over 400 million tons of oil per year, and China over 500 million tons. Novak announced that Russia's oil exports in 2025 would amount to 238 million tons. Perhaps Russia is just going through the motions. We have one problem: we have a guarantor of reliable supply. Trump hedged his bets, taking advantage of the recent shale oil peak, effectively making the US self-sufficient, as if to say, "Burning, baby, burning." And he hedged his bets on the sharp decline of the shale bubble by controlling Latin American oil. Venezuela, Ecuador and Mexico, taking oil from China... If only we could leave the oil market, even for a month, citing attacks on tankers and terminals, we would have crushed the Chinese, burghers and Indians, but no, we had Ganapos.

[Vicente]

I agree, it will all come down to rising energy prices, possibly the suspension of some production in countries deprived of these resources... but nothing more is in sight for now... it's very likely that no one will achieve their maximum goals in this mess.

[tralflot1832]

I hope China doesn't overbuy oil when Biden halved the strategic reserve. There was a scandal later.
We observe and do not interfere.

[Brturin]

Joe, of course, did a good job of reducing his reserves to almost the bare minimum, but... the States didn't start with Venezuela for nothing – they got a reserve source for themselves, and now, with Venezuelan oil, they've deprived the rest of the Arab world of its own... So the question is, how much will they sell Venezuelan oil for, how much will they pocket, and how much will the traitors in Venezuela get from their lordly shoulder...

[tralflot1832]

Since this is going on, the price of coal, which the Swede hates, must go up - how is it doing on the stock exchange???

[TermNachTer]

Coal is also slowly rising - already $135 per ton))) in short, no one will be left out)))

[Same lech]

The Japanese have 254 days of reserves, the Chinese 10 days, South Korea, India, Pakistan, the Philippines... zero... the oil and gas storm is raging in full force.
And this is just the beginning.
The entropy of events is uncontrollable due to the antics of Trump and Netanyahu.
Here, it is not chips and advanced technologies that come to the fore, but oil refineries and energy resources.

[TermNachTer]

The Chinese have enough crude oil reserves to last nine months - they didn't waste any time while prices were low.

[Junior Private]

Emergency reserves must remain untouched; that's what they were created for. Now they'll be gobbled up, and then real fun will begin.

[Vicente]

Perhaps the US and Israel are ready to back down, and perhaps the EU knows something about this, just to buy time—a week, two, maybe a month...

[codetalker]

I remember our respected experts (from across the political spectrum) who, in the first days of the war, all shouted as one: “Nothing will happen; anyone who says oil is at 120 is an idiot.”
And without blinking an eye, in a month they will again be “instructing” people and authorities with their expert analyses.

[yuriy55]

FT: G7 countries to discuss releasing their emergency oil reserves to the market

It's time for this Rotten 7 to start using its emergency reserves of "fart" gas...
Russia no longer owes anything to anyone until sanctions are lifted and assets are unfrozen. Any provision of goods and resources to Europe should be considered economic sabotage...

[Khamzat-41]

Gas has already reached $800 per thousand cubic meters! Europeans will have to pay for everything! Or switch to firewood; winter isn't over yet!

[tralflot1832]

Quote: Khamzat-41

Gas has already reached $800 per thousand cubic meters! Europeans will have to pay for everything! Or switch to firewood; winter isn't over yet!

What is the reason for $800?

[alexputnik17]

G7 countries will discuss the release of their emergency oil reserves to the market.

They'll discuss, kiss, hug, and then part ways, with nothing to say. Just like during COVID, how people help each other with fires and floods, and so on.

[abrakadabre]

They'll discuss, kiss, hug, and then part ways, with nothing to say. Just like during COVID, how people help each other with fires and floods, and so on.

The most important thing is who physically owns these European emergency reserve storage facilities. They'll start shouting, "Hands off the emergency reserve! The storage facilities are on our territory, which means the oil in them is ours!"
This is exactly the kind of turnaround that would occur in a critical situation. During COVID, they divided up vaccines, medical masks, and ventilators in exactly the same way.

[snow mountain]

Quote: Hunter 2

If only the Norwegians could carry out a couple more sabotage operations against their oil and gas complex... and Europe would howl!

Well, there are also gas hubs in seaports.

[abrakadabre]

Well, there are also gas hubs in seaports.

Gas pumping infrastructure without the gas itself is nothing.

[bars042]

We sat down and discussed it.

Reports of a possible release of oil reserves by the G7 countries will draw attention to the emergency oil stockpiles stored in the United States. According to the latest official data, they amount to approximately 415 million barrels. This is significantly less than the full capacity of the reservoirs, but more than the low of 347 million barrels reached in July 2023, which has persisted for several decades.

If US President Donald Trump supports the G7 initiative to develop strategic petroleum reserves, it would echo the decisions of the Joe Biden administration when it faced soaring energy prices. His predecessor's most significant initiative to develop oil reserves occurred in 2022 and was a protracted 180 million barrel program following the Russia-Ukraine conflict.

Is this possible?

[alexputnik17]

Quote: abrakadabre

They divided up vaccines, medical masks, and ventilators in the same way during COVID.

Of course it will be There's an EU country called San Marino. 36,000 people live there. They've been completely forgotten. Our planes flew with vaccines. And the Russian Chemical Defense Ministry, having completely cleaned up ungrateful Italy of COVID-19, went to clean up San Marino at Russia's behest.

[alexputnik17]

Quote: abrakadabre

Gas pumping infrastructure without the gas itself is nothing.

Port hubs aren't gas or oil storage facilities. Something enters the tank, then a pipeline goes to the consumer.