Germany Forced to Tap Strategic Oil Reserves, Last Time Was 15 Years Ago

German Federal Minister for Economy and Energy, Katrin Göring-Eckardt, announced on the 11th that Germany will release 19.51 million barrels of strategic oil reserves to ease rising oil prices caused by U.S. and Israeli military strikes on Iran, which have led to a surge in global energy prices.

According to Xinhua News Agency, Göring-Eckardt stated at a press conference that Germany will release oil reserves following the International Energy Agency’s recommendation, sending a clear signal to the market to suppress high-risk premiums and speculative profits. “If concerns about supply shortages diminish, oil prices will fall back.”

The German government will also implement restrictions on how gas station prices are adjusted, allowing only one increase per day, while price decreases remain unrestricted. Göring-Eckardt said that past energy crises have shown that oil prices rise quickly but fall slowly, so it is necessary to limit the frequency of price increases to stabilize market fluctuations.

Germany has used its strategic oil reserves three times so far: during the Gulf War in the 1990s, after Hurricane Katrina hit the U.S. in 2005, and during the 2011 Libyan war that disrupted oil exports.

It is reported that between February 27 and March 9, the Dutch TTF natural gas futures price, a benchmark for European natural gas, increased by about 74%, and London Brent crude oil futures rose by approximately 27%. The report also pointed out that about one-third of global maritime fertilizer trade depends on this route. If transportation continues to be hindered, fertilizer supplies to some of the least developed countries will be affected.