G7 is to discuss a joint release of emergency oil reserves in an emergency meeting on Monday, according to FT; call at 08:30 EDT (12:30 GMT)
- Three G7 countries, including the US, have so far expressed support for the idea, according to the people familiar with the talks.
- A source suggested a joint release in the range of 300-400mln barrels, 25-30% of the IEA's reserves, would be appropriate.
- On Tuesday, the IEA will hold an emergency meeting to mull options on the emerging oil supply crisis.
Context
The potential joint release of emergency oil reserves by G7 countries indicates a coordinated effort to address rising oil prices amid a supply crisis. This move, particularly if it materializes in significant volumes, could substantially impact oil prices and related currencies, particularly those linked to energy exports. Traders should be vigilant for market reactions around the meeting and subsequent IEA discussions, as shifts in supply dynamics may influence sentiment across the commodities and forex markets.
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