The International Energy Agency has proposed the largest release of oil reserves in its history to restrain soaring crude prices amid the US-Israel war with Iran, the Wall Street Journal reported, citing officials familiar with the matter.
The release would exceed the 182 million barrels of oil that IEA member nations put on the market in two releases in 2022 when Russia launched its full-scale invasion of Ukraine, the newspaper said.
The IEA called an extraordinary meeting of members on Tuesday, with nations expected to decide on the proposal the following day, the paper said.
The plan would be adopted if there were no objections, it said, but protests by even one country could delay the effort.
G7 energy ministers stopped short of agreeing on a release of strategic oil reserves but in a statement on Wednesday said they supported the idea in principle.
French President Emmanuel Macron is due to chair a meeting of G7 leaders later on Wednesday.
"In principle, we support the implementation of proactive measures to address the situation, including the use of strategic reserves," the G7 energy ministers said. "G7 members will carefully consider the recommendations."
One G7 source told Reuters that although no country currently faced a physical shortage of crude, prices were rising sharply, and leaving the situation unattended was not an option.
However, any actual release cannot start immediately because decisions on aspects such as total volume, country allocations, and timing require further discussion, the source said.
"The IEA secretariat is expected to propose scenarios, based on expected market impact, and outreach may extend to non-IEA members like China and India," the source said.
The IEA and the White House did not immediately respond to Reuters' requests for comment.
IEA member South Korea is participating in the discussion "and reviewing its position," a spokesperson for the country's industry ministry said on Wednesday.
Oil prices see-sawed on Wednesday as markets doubted whether the IEA's reported plan for a record release of oil reserves could offset potential supply shocks from the conflict in the Middle East.
