G7 to release 100 million barrels of diesel and other reserves as prices soar
The amount is equivalent to around one day’s worth of global oil demand
The Group of Seven nations – the US, France, Italy, Germany, Japan, Britain and Canada – have agreed to release 100 million barrels of diesel and crude from their strategic stockpiles over the next four months. This move aims to help ease a crisis caused by record-high prices, primarily triggered by the Iran conflict. The International Energy Agency (IEA) will coordinate this effort, describing it as "decisive, coordinated measures to stabilise immediate energy supplies" and to curb price spikes.
Diesel and related fuels constitute around 28% of global oil demand, with shortages resulting from attacks on energy infrastructure in the Middle East and Russia, reducing the world's capacity to convert oil into usable fuels. The G7 also plans to release a "substantial" amount of diesel within 20 days, though the exact quantity remains unspecified. This decision follows threats by US President Donald Trump to ban the export of American diesel, a move that faced opposition from US oil companies and European leaders.
European leaders welcomed the G7's announcement, noting that the release of heavily stocked diesel oil will alleviate pressure on prices ahead of the November midterm elections. France's President Emmanuel Macron, who is chairing the G7, confirmed Trump's commitment not to impose an export ban on diesel, stating that Europe hopes to see a quick reduction in petrol and fuel prices at the pump.
An export ban by the US on diesel would have been devastating for Europe, which has heavily relied on American fuel since withdrawing Russian imports following Ukraine's invasion in 2022. Europe imports approximately 1.5 million barrels of diesel daily, with a third coming from the US. China's recent restrictions on fuel exports further complicate the situation, and Trump has not yet followed suit.
The G7's move comes at a critical time, as an export ban would have little impact on domestic prices before the November elections and could further inflate petrol prices.
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