New Zealand PM warns of global oil supply disruption by prolonged Mideast conflict
New Zealand Prime Minister Christopher Luxon warned on Thursday of a prolonged Middle East conflict that could disrupt global oil supplies, as the government considers raising its fuel escalation level next week.
Wellington: New Zealand Prime Minister Christopher Luxon warned on Thursday of a prolonged Middle East conflict that could disrupt global oil supplies, as the government considers raising its fuel escalation level next week.
Kiwi drivers have queued at petrol stations amid the escalation of the Middle East conflict, but Luxon praised New Zealanders’ restraint in avoiding panic-buying at a press conference, saying national fuel supplies remain adequate for now.
Finance Minister Nicola Willis told reporters that the government would be providing twice-weekly fuel updates starting next Monday, adding New Zealand currently had 41.3 days of petrol, 47 days of diesel and 49 days of jet fuel.
In a separate announcement, Associate Energy Minister Shane Jones said New Zealand will release oil tickets — contracts for 1.577 million barrels of crude oil or the equivalent — to fulfill its commitment to the International Energy Agency’s (IEA) collective action.
Under the action, IEA members have agreed to release a record 400 million barrels of crude oil or equivalent to global markets in response to the oil supply issues created by the closure of the Strait of Hormuz, Xinhua news agency reported.
“While this is an important contribution to the global situation, the release has minimal impact on New Zealand’s domestic fuel security position,” Jones said.
On Wednesday, senior officials of New Zealand had said that New Zealand continued to maintain healthy reserves of petrol, diesel and jet fuel, despite global supply disruptions stemming from the Strait of Hormuz amid the Middle East conflict.
As of March 15, national stocks of petrol, diesel and jet fuel equated to about 49 days of cover, including supplies stored onshore and fuel on ships bound for New Zealand, Finance Minister Nicola Willis had said in a statement.
From that week, the Ministry of Business, Innovation and Employment was reporting on the pipeline of fuel shipments then en route to New Zealand, with more than a week’s worth of fuel expected to arrive in the following days, she added.
Associate Energy Minister Shane Jones, who had responsibility for fuel security, said that officials were working closely with industry to strengthen the frequency, quality and timeliness of fuel stock and shipping data, adding that there was then no need for any fuel restrictions.
