G7 Plans Emergency Oil Stock Release Amid Supply Concerns
The Group of Seven (G7) countries are planning to convene in the coming weeks to discuss another round of release from their emergency oil stocks amid supply concerns. French President Emmanuel Macron stated that G7 leaders will meet to discuss emergency stock levels, production capacity, and assess unlocking their Strategic Petroleum Reserves (SPRs) once again.
The move comes days after Europe's top oil supplier Saudi Arabia's state-owned oil company Aramco cancelled its late-September crude cargoes to several European refiners due to attacks on its 1,200 km East-West Pipeline. Macron noted that in the coming weeks, the G7 will hold a meeting dedicated to energy issues and consider options for potential releases from strategic reserves.
The US Department of Energy (DOE) may also offer more crude oil from its ongoing 172 million bbls drawdown from the US SPR, according to Argus Media. US energy secretary Chris Wright stated that 'the market right now is saying, 'Hey, maybe we need that oil.' So quite possibly we will respond to that.'
The G7 consists of seven major economies: Canada, France, Germany, Italy, Japan, the UK, and the US, with the EU and Australia also involved. A new batch of emergency stockpile release could restore some supply concerns in the market.