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G7 to release up to 100 million barrels of diesel, crude
IEA is coordinating release over next 4 months
Emmanuel Macron is chair of the G7. (Gonzalo Fuentes/pool via Associated Press)
Key Takeaways:
- The Group of Seven nations are to release as much as 100 million barrels of emergency oil and diesel stocks after pressure from the Trump administration to quell rising fuel prices. The release, being coordinated by the International Energy Agency, will
- The move followed U.S. pressure to ease rising fuel prices and avoid a potential diesel export ban that could disrupt European supplies.
- French President Emmanuel Macron said members committed to the release and to avoiding export bans, while diesel market strength weakened on expectations of added supply.
The Group of Seven nations are to release as much as 100 million barrels of emergency oil and diesel stocks after pressure from the Trump administration to quell rising fuel prices.
The release, being coordinated by the International Energy Agency, will take place over the next four months, Emmanuel Macron, France’s president told journalists in a briefing on Oct. 2. He is also the current chair of the G7.
The G7 would like to trigger a drop in fuel prices, he said.
The decision came after the U.S. floated the possibility of a debilitating diesel-export ban if European countries didn’t release more supplies. Such a move would threaten a crucial source of supply for the continent, which leans heavily on imports to cover a diesel-production shortfall.
The IEA already coordinated a plan to release 400 million barrels in March soon after the Iran war broke out, but President Donald Trump has criticized Europe for not making those barrels available fast enough.
“We have all committed together to releasing these strategic reserves in the proportions I mentioned, with a focus on diesel, and we are all committed to ensuring there are no export bans, and President Trump, in particular, was very clear on this point,” Macron said.
Trump said in a social media post on Oct. 2 that he welcomed the latest action.
“Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil,” Trump said. “The process will begin immediately.”
Diesel’s premium over crude, a key measure of market strength, slumped as traders priced in the extra supply.
