Germany releases a share of its oil reserve to calm the market
Clean Energy Wire
The German government is releasing oil reserves from the country’s Petroleum Stockholding Association (EBV) in an effort to calm the oil market. The move follows a decision on Wednesday 2 March, by the member states of the International Energy Agency (IEA) to release a total of 60 million barrels of oil. Justifying the German contribution, economic affairs and climate minister Robert Habeck said, “In times like these it is important to act as one”. The internationally coordinated step serves to stabilise prices, which have risen sharply as a result of the Russian invasion of Ukraine. The price increases are a sign of the first disruptions in delivery, the economic affairs ministry said, citing industry experts. There are currently no oil supply restrictions in Germany, however, it added. Germany’s contribution corresponds to the 5.4 percent German share of the oil consumption of the IEA countries – around 435,00 tonnes of the total volume of 60 million barrels to be brought onto the market and some 3 percent of Germany’s existing oil reserve. The reserve would continue to hold 90-days-worth of oil, the ministry said. The EBV will offer the petroleum stocks to petroleum industry companies for sale at market prices.
The outbreak of war in Ukraine is shaking the foundation of Europe's energy and security architecture, as a decade-old reliance on Russian fossil fuel imports could come to an end. In first reactions, Germany put the contentious Nord Stream 2 pipeline project on hold, announced the creation of strategic coal and gas reserves, and committed to building terminals for the import of liquefied natural gas (LNG).