G7 nations said on Monday they were prepared to implement "necessary measures" in response to surging global oil prices, but stopped short of committing to release emergency reserves, despite crude prices surpassing $119 a barrel amid the US-Israel war on Iran.
"We are not there yet," French Finance Minister Roland Lescure told reporters in Brussels, after hosting a teleconference meeting of G7 finance ministers.
"What we've agreed upon is to use any necessary tools if need be to stabilise the market, including the potential release of necessary stockpiles."
Oil prices hit their highest levels since mid-2022 on Monday, propelled by fears of prolonged shipping disruption and reduced output from some major producers wary of the conflict escalating.
A G7 official told Reuters there was "broad consensus" not to release reserves at this stage. "It was not that someone was against, it's just about timing. More analysis is needed," the official said, adding that a final decision would fall to G7 leaders.
Lescure, whose country holds the G7 presidency this year, said there were currently no supply problems in either Europe or the US.
Western economies coordinate their strategic oil stockpiles through the Paris-based International Energy Agency, which was formed after the 1970s oil crisis.
"We stand ready to take necessary measures, including to support global supply of energy such as stockpile release," G7 finance ministers said in a joint statement.
IEA director, Fatih Birol, pushed for a release of the reserves, said Japanese Finance Minister Satsuki Katayama, whose country holds one of the world's largest oil stockpiles.
IEA member countries are net oil importers who are required to keep at least 90 days' worth of oil imports in stock.
The IEA coordinated the largest collective release in its history in 2022, when members freed more than 180 million barrels of oil after Russia's invasion of Ukraine.
IEA members hold more than 1.2 billion barrels of public emergency oil stocks and a further 600 million barrels of industry stocks are held under government obligation.
French President Emmanuel Macron said that energy ministers would discuss the situation on Tuesday on the sidelines of a nuclear summit in Paris.
(Reporting by Alexander Chituc and Jan Strupczewski in Brussels and Gianluca Lo Nostro and Leigh Thomas in Paris; Additional reporting by America Hernandez in Paris and Makiko Yamazaki in Tokyo; Editing by Sharon Singleton, Tomasz Janowski, Bernadette Baum and Pooja Desai)
