The Group of Seven (G7) nations have agreed to release 100 million barrels of crude oil and diesel from their strategic reserves to counter soaring fuel prices and energy supply disruptions. The decision follows pressure from the United States and is a response to the impact of the war in Iran on global energy markets.
Following a video conference on Friday, October 1, G7 leaders announced that the release would begin immediately in coordination with the International Energy Agency (IEA) and would continue over four months. A significant portion of the diesel reserves is scheduled to enter the market within the first 20 days to have a swift impact on prices.
According to Reuters, the Donald Trump administration had previously urged France and Germany to release their emergency diesel stocks, threatening to restrict U.S. diesel exports to Europe if they refused. Europe has become increasingly dependent on diesel imports from the U.S. in recent years.
On Friday, Trump confirmed on his Truth Social network that European countries had agreed to release a "large amount" of diesel. Prior to the final G7 decision, EU members had considered a French proposal to release 50 million barrels of diesel from European reserves and 50 million barrels of crude oil from IEA member reserves.
Global diesel supplies have been under pressure in recent months due to factors such as the war in Iran, Russian restrictions on petroleum product exports, and a halt in Chinese fuel exports. Following the G7 announcement, diesel futures in the U.S. and Europe saw a price decline.
The G7 also pledged not to impose any restrictions on energy exports among its members and called on other producers to refrain from actions that could increase market pressure. The group had previously backed a release of up to 400 million barrels from strategic reserves last March in response to the war in Iran.
Source: Reuters
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