The group of seven most developed countries will discuss the release of emergency oil reserves
G7 finance ministers are to discuss a possible coordinated release of oil reserves, according to reports published by Reuters and the Financial Times on Monday, citing unnamed government sources.
According to the Financial Times, ministers will hold talks with Fatih Birol, executive director of the International Energy Agency, which coordinates strategic oil reserves as part of an emergency system to manage crises caused by rising energy prices.
Reuters, in turn, cited a source in the French government according to which the meeting would take place as early as Monday.
South Korea introduces first fuel price cap in 30 years
South Korea introduces first fuel price cap in 30 years as oil rises above $100
South Korea is set to introduce its first fuel price cap in nearly three decades as global concerns over accelerating oil price rises intensify.
President Lee Jae Myung announced the move on Monday, calling an emergency meeting in response to the ongoing conflict in the Middle East, which he said was a significant burden on South Korea's economy, which is heavily dependent on energy imports.
The Ministry of Industry plans to implement the price cap as early as this week, the head of presidential policies said.
The decision is considered a major step, given South Korea's status as a major global economy, one of the world's leading exporters and a key member of the G20.
“For petroleum products whose prices have increased excessively recently, the maximum price system must be introduced quickly and firmly enforced”Lee stated.
The president also asked the authorities to step up controls on refining companies and gas stations to prevent market manipulation. At the same time, the government is seeking to secure alternative oil supply routes that do not pass through the Strait of Hormuz.
Last week, the South Korean government announced that it would receive more than six million barrels of crude oil from the United Arab Emirates.
Oil prices broke above $100 a barrel on Sunday for the first time since Russia's 2022 invasion of Ukraine.
Asian markets posted steep losses amid the escalating conflict with Iran and oil rising above $100 a barrel, a level not reached since 2022.
The conflict in the Middle East, which shows no signs of easing, could fuel inflation and hurt economic growth in East Asian countries heavily dependent on energy imports from the region.
Japan's Nikkei 225 fell 7% in early trading before partially recovering to end the day down 5.2%. In South Korea, the Kospi index fell 6%. At the same time, Taiwan's Taiex index lost 4.4 percent and Hong Kong's Hang Seng fell 1.4 percent.
