Australia will increase its oil stock through an agreement with the U.S. to help support the global market, following a video conference with G-20 energy ministers. Energy markets in Australia were operating safely and securely and the government is working with the sector to maintain supply for electricity, gas and liquid fuels, Energy Minister Angus Taylor said in a statement. The nation is looking to finalize commercial terms for its strategic petroleum reserve pact with the U.S., he said. “This arrangement will enhance not only Australia’s domestic fuel security by bolstering our stockholdings, but will also assist supporting the global oil market during this challenging time,” Taylor said.
The world’s biggest oil producers were close to a deal that will see a 10% cut in crude production after U.S. President Donald Trump helped to broker a truce, with Mexico the last holdout of the OPEC+ coalition. Crude oil futures fell 9% in New York Thursday as large portions of the world remain in lockdown to stop the spread of the coronavirus.
The G-20 energy ministers agreed to establish a focus group to monitor measures undertaken to balance the interests of oil companies and consumers to ensure the uninterrupted flow of energy, Taylor said, adding that Australia was interested in participating in the group. The ministers will meet in September to review the response to the virus.