LyrArc Article Gist
G7 Finance Ministers plan to release 300 million barrels of oil (2 weeks worth of Straits of Hormuz lost oil production ) to keep oil prices in check. Oil Prices reach $101 a barrel after 1 week of the US Israel war with Iran. Oil going through Straits of Hormuz are 20 million barrels a day, if 300 million barrels are released that would cover another 15 days of the war. By that time safety has to be reestablished, and additional production brought from Venezuela, from Russia for use by India, so that maybe 50% of the 20 million barrels can be produced from other locations in the world to make up for the loss.

Fatih Birol, head of the International Energy Agency says- 

"In addition to the challenges of transit through the Strait of Hormuz, a substantial amount of oil production has been curtailed. This is creating significant and growing risks for the market.

"IEA member countries currently hold over 1.2 billion barrels of public emergency oil stocks, with a further 600 million barrels of industry stocks held under government obligation."