It is likely that they still need time to work out the details and nuances of the plan. But in the meantime, the threat has basically worked as oil prices have come off the boil. To some argument and extent, the “signal” that they are going to do so is in itself a tool that they are using to try and ward off market players.

That especially without having yet to dip into their pockets and release the actual reserves. For now, there is mention that there is no physical shortage of oil reaching refineries in Europe or the US just yet. As such, the G7 and IEA may look to bide their time before actually taking action.

But in time, we will start to see shortages come about especially as the Strait of Hormuz remains closed. The biggest impact is arguably on Asia, so there’s that to consider as well.

It’s a fine and delicate balance that they are trying to work out here. For one, major economies do not want higher oil prices definitely. However, they also must consider that any flooding of supply will be going into a market that was already facing a supply glut in 2025.

You can bet that if the threat and warning of releasing the reserves manage to pin down oil prices for a long period, they would just leave it at that rather than have to fall back on their “insurance policy” of actually having to do so. Politicians. Pfft.