Energy ministers from the Group of Seven nations confirmed readiness to take necessary steps to support global energy supplies, including possible joint release of strategic oil stockpiles, Japan's Industry Minister Ryosei Akazawa told a briefing on Tuesday.
The International Energy Agency (IEA) hosted a meeting of G7 energy ministers at its headquarters in Paris, chaired by Minister Roland Lescure of France, which holds the G7 presidency.
At the virtual meeting, the agency provided an update on its view of the situation in global oil and gas markets, which have been significantly affected by the conflict in the Middle East.
Lescure said the group is prepared to release emergency stockpiles if required.
“We are ready to take the necessary measures, including drawing on strategic reserves to stabilize the market,” Lescure said.
“We are not there yet,” he told reporters in Brussels, after hosting a meeting of G7 finance ministers.
“We are monitoring the markets, the impact on the macroeconomy but also on our citizens,” he said, adding that coordination among major economies remains central to the response.
“Everyone is willing to take measures to stabilize the market, including the US,” Lescure said.
“We have asked the IEA to elaborate scenarios for a potential oil stock release, we need to be ready to act at any moment,” he added.
For its part, the agency said in a statement, “We discussed all the available options, including making IEA emergency oil stocks available to the market. IEA Member countries currently hold over 1.2 billion barrels of public emergency oil stocks, with a further 600 million barrels of industry stocks held under government obligation.”
European governments are on edge about the prospect of a repeat of the energy crisis they faced in 2022 after Russia invaded Ukraine, when prices surged to record peaks, forcing some industries to shut down operations.
The EU imports more than 90% of its oil and around 80% of its gas, making European countries highly exposed to fluctuations in global oil and gas prices.
European Commission chief Ursula von der Leyen is due to propose measures to tackle the politically sensitive issue at an EU summit next week.
Being “completely dependent on expensive and volatile imports” of fossil fuels puts Europe at a disadvantage to other regions, von der Leyen said in a speech.
“Developments in the Middle East remind us once again of the risks of relying still too much on fossil fuels,” von der Leyen said, adding that reducing Europe's nuclear energy sector was a “strategic mistake.”
On Tuesday, the EU called on member states to help consumers and businesses by lowering taxes on energy where possible, as war in the Middle East saw oil and gas prices surge.
“If you are at all able to lower taxes on energy, especially on electricity, there is a huge potential” to reduce consumer bills, EU's energy chief Dan Jorgensen said at Parliament in Strasbourg on Tuesday.
Jorgensen said cutting taxes could help ease the financial burden on households as rising energy costs continue to affect consumers across the union.
According to the European Commission Joint Research Center, around 48 million people in Europe, roughly one in ten, cannot afford to heat their homes adequately.
