G7 energy ministers to meet Tuesday morning to discuss release of oil reserves, sources say

Energy ministers from the Group of Seven nations will hold a virtual meeting Tuesday morning to discuss a possible release of oil reserves to address the supply disruption triggered by the Iran war, sources told CNBC.

G7 finance ministers met Monday to discuss a release of reserves but did not make a decision. The G7 members are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.

The talks between the G7 have been “positive,” the sources said. Any coordinated action on releasing reserves would occur after the energy ministers’ meeting, they said.

The U.S. believes a joint release of 300 million to 400 million barrels, representing 25% to 30% of the 1.2 billion barrels in the reserve, would be appropriate, sources told CNBC.

Oil prices surged above $100 per barrel at their highs as the critical Strait of Hormuz remains closed due to threats from Iran. It is unclear when the strait may reopen again to traffic.

Prices pulled back Monday on the expectation that a release of oil reserves will occur. U.S. crude was last trading around $95 per barrel while global benchmark Brent was just under $100.