G7 countries to discuss tapping strategic oil reserves as prices smash through US$100 a barrel

Oil prices breached $100/barrel and spiked to nearly $120/barrel in early European trading, prompting the G7 to discuss releasing oil from strategic reserves. The move signals heightened near-term supply stress and adds inflationary pressure to economies and input costs for businesses. A coordinated reserve release could cap prices, but expect short-term volatility and risk-off positioning across markets until clarity on supply measures.

Analysis

Oil prices breached $100/barrel and spiked to nearly $120/barrel in early European trading, prompting the G7 to discuss releasing oil from strategic reserves. The move signals heightened near-term supply stress and adds inflationary pressure to economies and input costs for businesses. A coordinated reserve release could cap prices, but expect short-term volatility and risk-off positioning across markets until clarity on supply measures.