France says strategic oil reserves could offset supply shocks amid Mideast tensions

ISTANBUL

Strategic oil reserves around the world could help stabilize markets if supply disruptions persist in the Middle East, France’s economy minister said Wednesday, as G7 leaders prepare to discuss the issue amid rising fuel prices.

More than $1 billion worth of strategic oil reserves exist globally and could be mobilized if necessary, Roland Lescure said in an interview with BFM TV and RMC.

“If we can’t reopen the Strait of Hormuz immediately, we’ll replace it with other oil that will come from elsewhere and circulate around the world,” Lescure said, stressing that such measures would require international coordination.

“Obviously, these reserves aren’t infinite, and above all, it must be done in a coordinated manner,” he added.

The comments come as tensions in the Middle East disrupt global energy markets.

On the 12th day of the conflict involving Iran, fuel prices in France have surged, with gasoline rising by about 15 cents per liter and diesel increasing by nearly 30 cents.

France currently has strategic oil reserves covering 108 days of imports, according to Lescure.

“We could stop everything and we would still have 108 days available,” he said, noting that slightly more than 90 days of reserves are managed by a public operator, while about 18 days are held by private operators.

Lescure also said the issue of strategic oil reserves will likely be discussed by leaders of the G7, who are meeting at the request of Emmanuel Macron to address the war in the Middle East and its economic consequences.

The move follows a meeting of G7 energy ministers in Paris, who said they were ready to take “all necessary measures” in coordination with the International Energy Agency, including the possible release of strategic oil reserves, to ensure market stability.