Emmanuel Macron, the President of France, announced that a meeting of G7 countries will be held in the coming weeks to discuss the potential release of strategic oil reserves. This action aims to mitigate the impact of rising energy prices on the economic growth of countries.
Fuel Price Increase in Europe
Fuel prices in Europe have significantly increased, and due to conflicts in the Middle East and the war in Ukraine, oil supply has come under pressure. This week, the price of diesel gasoline in Europe reached over $200 per barrel for the first time since April, and including taxes, its retail price exceeds $300.
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Efforts to Maintain Strategic Reserves
Macron stated at a press conference in Paris, "I will hold a G7 meeting to advance coordination at the reserve level, and we will have more cooperation in terms of exports and production capacity." This meeting aims to enhance cooperation and prevent unnecessary tensions between G7 countries and their key partners. Additionally, the meeting will focus on examining options for releasing strategic reserves.
The International Energy Agency (IEA) agreed earlier this year to release an unprecedented amount of supply from emergency reserves to global markets. In Europe, these reserves mainly consist of fuels such as gasoline and diesel that can effectively control fuel prices.
Current Status of Oil Reserves
To date, IEA members have released over 300 million barrels from reserves as part of a program announced earlier this year. Last week, the head of oil markets at the agency stated that a large volume of emergency reserves, especially in Europe, remains.
France is working to ensure the supply of fuels such as diesel, jet fuel, and natural gas for the coming months, and the government is set to convene on Monday to discuss new measures to reduce high energy costs.
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