G7 to release 100 million barrels of oil and diesel after Trump export ban threat

The G7, an alliance of advanced economies including the United States, has agreed to release 100 million barrels of oil and diesel to alleviate supply pressures driving up prices. This move comes in response to US President Donald Trump's threat to ban diesel exports, which would have eased US consumer prices ahead of November's midterm elections but raised prices globally.

The G7 members, comprising the US, UK, Canada, Japan, Germany, Italy, and France, along with the European Union, have collectively decided to refrain from export restrictions on energy and energy products among themselves. This decision aims to stabilize energy supplies, enhance supply chain resilience, and shield households and businesses from abrupt price shocks.

UK Foreign Secretary Ed Miliband highlighted that these measures would stabilize energy supplies and shield households and businesses from price shocks. The coordinated action is expected to bring down the prices of petroleum products, especially diesel. French President Emmanuel Macron emphasized that the coordinated release of 100 million barrels will begin immediately over four months, with a substantial release of diesel within the first 20 days by G7 members and partners.

The 100 million barrels will consist of a mix of diesel and crude oil. The price of global benchmark Brent crude oil dropped below $100 per barrel but has since rebounded to around $102. Before the US and Israel invaded Iran, the price of crude oil was around $73.

The G7 leaders also pledged to coordinate maintenance schedules to prevent multiple refineries from shutting down simultaneously and to encourage countries capable of doing so to ramp up diesel refining. Avoiding a ban on US diesel exports will provide relief to countries relying on diesel imports, including the UK, where prices at the pump reached £2 per litre for the first time on Friday.

Over half of the UK's diesel supply is imported, with 31% coming from the US. The US, a leading diesel supplier with daily output of around 4-5 million barrels, plays a crucial role in the global market.