G7 Nations May Ask for More Oil Production

Rumors have come out of France that G7 financial ministers will ask the largest oil-producing nations to increase supply. Prices have crept up sharply again since they sold off early in the summer. WTI crude sits at about $97.

Concerns about the Middle East, particularly Iran, have caused worry about supply. There is ongoing speculation about an armed confrontation between Israel and Iran.

Although crude production and refinery production may be harmed by Isaac, which is the intense focus of supply now, that interruption is likely to be short lived as the storm moves inland across the middle United States.

MSNBC reported that a member of the French government has already signaled the request, although it has not been confirmed

The Group of Seven industrialized nations will issue a joint call for an increase in global oil production in a bid to bring down fuel prices, French Finance Minister Pierre Moscovici said on Tuesday.

There have been ongoing conversation about the release of strategic oil reserves by both the U.S. and its allies, but so far, no government has indicated it is even leaning in that direction.

Douglas A. McIntyre

Filed under: 24/7 Wall St. Wire, Oil & Gas