Europe set to release 42 million barrels of oil for 'short term relief'
Europe will release 42 million barrels of oil reserves into the market over the next three months as part of its commitment to ease prices, France’s economy minister Roland Lescure said on Thursday. Half of that release will be diesel, Mr Lescure said ahead of a meeting of EU energy ministers in Luxembourg. Group of Seven nations agreed last month to release up to 100 million barrels, marking a…
France plans to release 42 million barrels of oil reserves over the next three months to help ease rising prices, said Economy Minister Roland Lescure on Thursday. Half of the release will consist of diesel fuel, he announced ahead of a meeting of EU energy ministers in Luxembourg. The Group of Seven nations pledged last month to release up to 100 million barrels, completing a 400-million-barrel release coordinated by the International Energy Agency in March.
Lescure revealed that a previously announced French release of 10 million barrels of diesel would enter the market in the coming days, with effects on prices expected within the following week. These reserves will be supplied at cost price, potentially lowering prices by 12 cents to 18 cents per liter, he added. This action is described as short-term relief, with Lescure expressing hope that the crisis will resolve gradually and keeping options open if the situation worsens.
France is also negotiating a multilateral agreement to reduce insurance costs for ships navigating the Strait of Hormuz, a route blocked by Iran since the US and Israel initiated strikes earlier this year. Concerned about the protracted crisis, Lescure stressed the need to explore diplomatic solutions. Concurrently, France is preparing for winter, and the country has initiated plans to lower energy prices, with fuel distributors encouraged to advertise reduced prices starting November 1.
Small distributors in remote areas will receive zero-interest loans. Lescure recently visited Abu Dhabi as part of a tour of five Gulf countries led by French President Emmanuel Macron, resulting in a deal with Saudi Arabia, Kuwait, the UAE, and Bahrain for 300,000 tonnes of diesel per month. The impact of this agreement on pump prices remains uncertain due to volatile international market prices.
Additionally, Qatar's pledge to supply liquefied natural gas (LNG) to France is contingent on its ability to transit LNG ships through the Strait of Hormuz, the sole export route for Qatar.
Written by urgent.news from The National Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
