Germany makes Nat´l oil reserves available amid Ukraine attack

The German government said on Wednesday it would free up some of its national oil reserves in response to rising oil prices, as it made some €1.5 billion available to purchase more liquefied natural gas (LNG) to help secure its energy supplies, reported dpa.

Germany is among the 31 member countries of the International Energy Agency (IEA) that planned to release a total of 60 million barrels from emergency oil reserves to stabilize markets after the Russian invasion of Ukraine.

Economy Minister Robert Habeck said on Wednesday that "in times like these, it is important to act in unison." The oil stocks released by Germany amount to some 3% of its total reserves.

The internationally coordinated step serves to stabilize prices, which have risen sharply as a result of the Russian war of aggression on Ukraine.

On Wednesday, a barrel (159 litres) of North Sea Brent oil cost just under $114, the highest price since 2014, while a barrel of US West Texas Intermediate oil was trading at more than $112. This is the highest level since 2011.

Since the beginning of the year, oil prices have risen by around 45%, and by more than $10 since the beginning of the week.

This is only the fourth time that reserves have been released in an internationally coordinated manner. The last time was in 1991, during the war in Iraq.

Germany's energy policies have been upended by the Ukraine conflict. It was forced to cancel the Nord Stream 2 gas pipeline, a joint project with Russia's Gazprom and other international partners.

It has turned instead to liquefied natural gas to help cover future energy needs, with Chancellor Olaf Scholz announcing that Germany would be getting its first two LNG terminals.