G7 may tap strategic oil reserves but move 'not yet' needed: Report

GENEVA

G7 finance ministers said Monday they may tap strategic oil reserves to stabilize global markets but stressed that such a move is "not yet" necessary despite recent price volatility.

The discussion came during a meeting of finance ministers from the world’s leading advanced economies, who agreed on the need to be ready to act if market conditions deteriorate, according to a report by BFMTV.

French Economy Minister Roland 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, adding that "we are not there yet."

Oil prices surged amid hostilities in the Middle East, with Brent crude briefly reaching $119 per barrel overnight, its highest level since the 2022 start of the Ukraine war, before easing to around $103.

Lescure said G7 countries are closely monitoring the impact on global markets and households.

"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.

He also stressed that there is currently no oil supply shortage in Europe or the US, noting that about 97% of French gas stations were supplied Monday morning.

France holds strategic oil reserves covering around 117 days of consumption, though officials said any release would likely be coordinated internationally.