BERLIN, March 11– Germany will release 19.51 million barrels of strategic oil reserve to deal with global energy price hikes amid the Middle East conflict, Economy and Energy Minister Katherina Reiche said Wednesday.
“The International Energy Agency (IEA) called on its member states late yesterday to release oil reserves totaling 400 million barrels,” Reiche told a news conference in Berlin.
“We will comply with this request and make our contribution.” Reiche said the amount was the largest ever in the agency’s history, describing the move as a clear signal to markets aimed at curbing high-risk premiums and speculative gains.
“If market concerns about shortages are alleviated, prices will ease and we definitely expect this to have a dampening effect,” she said.
German petrol stations will be required to limit price increases, while price cuts can be implemented at any time. Past energy crises have shown that pump prices tend to rise quickly with global oil prices but fall more slowly, she said.
Reiche added that the release aims to ease pressure on world oil markets, noting that other IEA members were also facing rising prices.
The IEA requires its members to maintain oil reserves equivalent to at least 90 days of net imports. Germany has tapped its strategic reserves three times: during the 1990-91 Gulf War, after Hurricane Katrina disrupted U.S. oil production in 2005, and in 2011 when the conflict in Libya disrupted oil exports. (Namibia Daily News / Xinhua)
