**The G7 nations are reportedly considering a coordinated release of up to 400 million barrels of oil from their strategic reserves to address skyrocketing prices and global supply disruption, according to a report. This news triggered a sharp reversal in the oil market, with US crude prices falling from session highs to near $108 per barrel.
G7 countries are considering a joint release from oil reserves to ease price spikes, stated a recent report. The potential release of nearly 400 million barrels would be coordinated by the International Energy Agency.
Three G7 countries, including the United States, have so far expressed support for the idea. U.S. officials reportedly believe a joint release in the range of 300 to 400 million barrels is appropriate.
The G7 countries collectively hold nearly 1.2 billion barrels of oil in their reserves. This development impacted the commodity market immediately after the news broke.
US oil prices crashed by $15 to sit at $108 after the report. The market attempted one of its biggest reversals in history following the news.
Earlier, US oil prices were up as much as 30% on the day. Less than four hours after the report, prices were up only 12%, erasing more than half of their daily gain.
One report summarized, “BREAKING: The G7 countries are considering a joint release of oil from reserves, potentially as much as 400 million barrels, as oil prices skyrocket.” Prices are now back below $108 per barrel on the news.
