Germany and Japan said Wednesday they would release oil from strategic reserves as the G7 coordinated an emergency response to crude market disruption tied to the US-Israeli war with Iran.
Prime Minister Sanae Takaichi said Tokyo would begin releasing reserves “as early as the 16th of this month,” adding that Japan was acting without waiting for a formal IEA coordination decision. She tied the move directly to Japan’s supply risk, saying the country’s “exceptionally high dependence on the Middle East” left it especially exposed to the oil shock.
Germany also committed to participate, though without a start date. Energy Minister Katherina Reiche said Berlin would comply with the IEA request and contribute to the release estimated at a combined 400 million barrels. The figure marks the largest-ever proposed coordinated release by IEA members if implemented at that scale.
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Austria also joined in the reserve release move, planning to release part of the emergency oil reserve and and extend the national strategic gas reserve.
The IEA had proposed its biggest release ever, above the 182 million barrels released in 2022 after Russia’s invasion of Ukraine.
France, which currently holds the G7 presidency, framed the reserve releases as part of a broader joint strategy. Finance Minister Roland Lescure said the announcements were “undoubtedly part of a highly coordinated strategy,” while G7 energy ministers said they were prepared to take “all necessary measures” in coordination with IEA members and other partners.
However, the gap between the proposed release and daily consumption remains large. Ipek Ozkardeskaya of Swissquote said 400 million barrels would be meager relative to the roughly 45 million barrels per day consumed by IEA countries.
She also said the Middle East is now pumping about 6% less oil in response to the Iran war.
The reserve moves sit inside a broader global response to energy stress. Bangladesh has deployed the army to guard oil depots while India has tightened controls over natural and cooking gas. In France, officials inspected petrol stations and fined retailers found inflating prices, and Austria mandated that price increases at gas stations will be allowed only three times a week.
The agency’s 32 members hold more than 1.2 billion barrels of public emergency oil stocks, with another 600 million barrels of industry stocks held under government mandates.
Information for this briefing was found via CTV News, AP, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
