Macron urges G7 to discuss new oil reserve release — OilPrice
French President Emmanuel Macron has called on G7 countries to discuss in the coming weeks a possible new release of emergency oil reserves amid reduced supplies of Saudi crude to Europe and rising diesel fuel prices. OilPrice reports.
According to the publication, Macron intends to convene G7 countries to coordinate inventory levels, exports and production capacity, as well as to consider the use of strategic reserves. France is also working to secure supplies of diesel fuel, jet fuel and natural gas for the coming months.
Diesel prices
Europe’s diesel price benchmark exceeded $200 per barrel this week, while the retail equivalent including taxes reached more than $300, OilPrice writes. The Russian Federation, an aggressor state, has extended restrictions on diesel fuel exports, while exports of petroleum products from the Middle East remain limited.
Unlike the US Strategic Petroleum Reserve, Europe’s emergency stockpiles contain significant volumes of refined fuel, including gasoline and diesel. According to the publication’s assessment, a new reserve release could quickly direct both crude oil and refined fuel to Europe.
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Saudi Aramco supplies
Saudi Aramco, according to the publication, informed at least two European oil refineries that they would not receive oil under long-term contracts in October. OilPrice links this to an attack on the East-West pipeline. The company is trying to restore partial pipeline capacity within several days, while a full restoration could reportedly take about six weeks.
Aramco found an alternative route for approximately 60 million barrels through the Persian Gulf and ship-to-ship transfers near Oman. Most of these volumes are heading to Asian refineries, while Europe is purchasing replacement crude from the North Sea and other sources.
Members of the International Energy Agency have already released more than 300 million barrels of emergency reserves since March. According to OilPrice’s estimate, global observable inventories are still 507 million barrels lower than at the start of the war, after declining by an average of 2.8 million barrels per day over the past six months.
