Status: 03/28/2022 10:51 a.m
In response to the Ukraine war, the German government released oil from the strategic reserve. Even before Russia’s attack on the country, German stockpiles were at their lowest level since 2015.
In the event of a crisis, the strategic oil reserve is intended to guarantee supplies to Germany for 90 days. Even before the Ukraine war, it had reached its lowest level since 2015. On January 31, 2022, 22.6 million tons of crude oil, fuel and heating materials were stored, the Hamburg Senate announced in response to a small inquiry from the AfD parliamentary group. On March 31, 2021, stocks were still 23.3 million tonnes of crude oil equivalent.
The lowest level up to that point was reached on March 31, 2018 with 22.7 million tons, the highest in March 2016, when 23.6 million tons of crude oil, fuel and heating fuels were stored in tanks and caverns.
Oil reserves released
As a reaction to the Ukraine war and to reduce price pressure on the oil market, the federal government released part of the national oil reserve three weeks ago. According to the International Energy Agency (IEA), the agency’s 31 member countries should release 60 million barrels of crude oil. Germany wanted to contribute 434,000 tons of oil, corresponding to its share of 5.4 percent in the oil consumption of the IEA countries.
The oil storage association, which is based in Hamburg and manages the German strategic oil reserve, says it keeps as much oil and oil products in stock at all times as was imported on average within 90 days in the previous three years.
Fluctuating oil price
In the past four weeks, the price of a barrel (159 liters) of Brent has increased by almost 20 percent, amid major fluctuations. Russia is one of the largest oil producers in the world, so market players fear that a shortage of Russian supplies could cause bottlenecks on the world market. This risk and speculation about possible supply difficulties has driven oil prices up overall.
While the USA and Great Britain want to get rid of Russian crude oil, the EU has not yet taken this step because of its high dependence on Russian energy imports, even though an oil embargo was recently discussed.
The price of oil, which is regularly influenced by a variety of economic and political considerations, is currently falling significantly. Experts cite two possible reasons for this: China has sent the financial metropolis of Shanghai into a partial lockdown due to a corona outbreak. Market players are therefore anticipating weak economic development and falling Chinese oil demand.
In addition, Yemeni Houthi rebels have announced a multi-day ceasefire on Saudi Arabia. In recent days, attacks on Saudi oil facilities have repeatedly raised concerns about the already strained oil supply.