G7 countries release oil reserves: impact on prices and supply

Oil prices have been soaring for months because of the war in the Middle East. The conflict between Iran and the USA is still not resolved. Tankers are being attacked in the Strait of Hormuz, which is so important for global energy trade, and the USA is moving more warships to the region, according to media reports. In view of this development, fears of supply bottlenecks are growing. That drives up prices.

Since the beginning of the year, Brent crude oil has become more than 60 percent more expensive, which has now led to a significant increase in inflation. The mark of 100 US dollars per barrel (159 liters) was exceeded. The leading industrial countries (G7) want to slow the rise in oil prices. Because it arrives at the gas station and puts a strain on consumers and the economy. Germany is already counteracting this with the fuel discount until the end of the year.

What have the G7 countries decided?

Under the coordination of the International Energy Agency (IEA), 100 million barrels of crude oil and diesel are to be released over the next four months. 100 million barrels roughly corresponds to the daily demand for crude oil that the IEA assumes worldwide. The signal to the market: There is enough oil available, there is no threat of a shortage.

Released quantities from Germany's oil reserves are sold at current market prices. They are actually intended to avert a shortage, not to reduce petrol and diesel prices.

Was there pressure from the USA?

After the G7 decision, Greenpeace referred to “threats” from the USA. “The dependence on gasoline and diesel makes us vulnerable to geopolitical blackmail,” said the environmentalists. US President Donald Trump had announced that he would consider banning the export of diesel from the USA. This could bring relief to fuel prices in his country. The declaration of the G7, which also includes the USA, now expressly states that member states will not impose any such restrictions.

After the Middle East, the United States is Europe's most important supplier of diesel. However, Europe and Germany have high refinery capacities themselves and so overall source relatively little from the USA - experts assume around five to six percent of their needs. However, due to the ongoing Iran war, US delivery volumes had recently increased.

With regard to Trump's statements about a possible export ban, the Federal Ministry of Economics said that coordinated solutions were crucial. “The basic rule is: the market must not be unsettled.” Minister Katherina Reiche (CDU) said: “For me, what was crucial in the discussions over the past 48 hours was to turn a tense situation into a reliable, joint approach.”

How long will German oil reserves last?

Germany also holds strategic oil reserves to compensate for supply disruptions. According to the Federal Ministry of Economics, these oil stocks could compensate for a complete loss of all imports for three months. Reiche emphasized that the release now being sought does not pose any risk to the energy supply. There will always be sufficient reserves to secure the supply in the system. This will be monitored continuously.

The reserve consists of crude oil and finished petroleum products such as diesel, gasoline, heating oil and aviation turbine fuel. The Petroleum Storage Association (EBV), which stores crude oil and mineral oil products (petrol, diesel, kerosene), is responsible. The stocks of petroleum products are distributed all over Germany.

The EBV takes care of purchasing the supplies. The system is financed through mandatory contributions from the petroleum industry. Approval takes place via a legal regulation from the Federal Ministry of Economics.

Where does Germany get its crude oil from?

Mostly not from the Middle East. According to the Federal Statistical Office, in 2025 it was only 6.1 percent. This affects, among others, Iraq, the United Arab Emirates and Saudi Arabia. The most important crude oil supplier for Germany is Norway. 16.6 percent of deliveries come from there. The USA follows closely behind with 16.4 percent. The third most important country is Libya with 13.8 percent. Other important suppliers are Kazakhstan and Great Britain.

Is the oil price going down now?

Oil prices initially fell after the agreement to release reserves on Friday. A barrel (159 liters) of Brent crude oil from the North Sea for delivery in December fell by more than three percent to $98.72. An expected greater supply is depressing prices worldwide.

Does this resonate with drivers?

According to the comparison app “Tankerkönig”, fuel prices fell slightly on Saturday as a nationwide average. For Super E10 it's a little over two cents per liter, for diesel it's more powerful at around 4 cents.

According to economist Samina Sultan, the release of oil and diesel reserves can only provide relief for drivers in the short term. The release, like the fuel discount, is a band-aid that can provide short-term relief, said the expert from the German Economic Institute (IW) to the German Press Agency. The fundamental problem remains.