The International Energy Agency (IEA) said Tuesday it is weighing whether to release emergency oil stocks after a meeting of G7 energy ministers in Paris focused on growing disruption in global oil and gas markets linked to the conflict in the Middle East.
In a statement after the meeting, IEA Executive Director Fatih Birol said oil market conditions had deteriorated over the past few days. He said problems related to oil transit through the Strait of Hormuz, along with a substantial reduction in oil production, were creating rising problems for the oil market.
Birol said the ministers discussed all available options, including the possible use of the IEA’s emergency oil stocks to stabilize supply.
According to the statement, IEA member countries hold more than 1.2 billion barrels of emergency oil reserves. In addition, 600 million barrels are also available through industry reserves under government mandate.
Birol said that he had also arranged for an emergency meeting of IEA member countries on Tuesday to discuss supply security and oil market conditions. He said that such a meeting would help determine whether emergency oil reserves should be made available to the oil market.
The meeting at IEA headquarters was chaired by French Minister Roland Lescure, whose country currently holds the G7 presidency.
Birol said that he is also working closely with energy ministers from other key oil-producing and oil-consuming countries outside the IEA membership.
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