European countries are preparing a coordinated release of about 400 million barrels of oil from strategic reserves to limit the sharp rise in energy prices and concerns about supply shortages amid the ongoing war against Iran, writes "Politico".
The initiative is being discussed within the framework of the International Energy Agency (IEA) - the international structure created after the oil crisis in 1973, which coordinates the energy policy and reserves of developed economies. If approved, the release of such a volume of crude oil would be the largest in the agency's history, more than double the 182 million barrels that member states released after Russia's invasion of Ukraine.
Support for the measure has already been expressed by several leading European economies - France, Germany, Italy and Britain.
German Energy Minister Katharina Reich said that Berlin would join the initiative:
"The IEA has requested the release of oil reserves in the amount of 400 million barrels. We will fulfill this request and make our contribution because Germany supports the agency's fundamental principle of mutual solidarity."
Strong support for the use of strategic reserves also comes from the United States, as well as from a number of Asian countries that are particularly dependent on oil supplies from the Persian Gulf region.
The issue will also be discussed at a virtual meeting of G7 leaders convened by French President Emmanuel Macron.
Oil prices have risen sharply in the past week and briefly exceeded $100 a barrel after Iran struck energy infrastructure in the Persian Gulf region in response to US-Israeli air strikes on Iranian targets. After the news of a possible release of reserves emerged, prices fell to around $90 per barrel.
According to diplomats, European countries support the decision "in principle", but it is not yet clear what exact share of the reserves each country will provide. The measure is aimed at stabilizing the market and preventing a more serious energy shock to the global economy.