IEA to decide on details of diesel stocks release next week, sources say, as market confusion grows

The International Energy Agency (IEA) is set to meet next week to determine the specifics of releasing diesel stocks, according to sources. Market confusion has grown due to uncertainty surrounding the amount of barrels Europe and the US plan to release to alleviate shortages and high prices. The surge in diesel prices has turned the fuel into a global political and economic issue, as it is essential for trucking, agriculture, and industry.

Tensions in Iran and Ukraine have further constrained exports and damaged refineries, contributing to the price increase. In response to US President Trump's pressure, the Group of Seven (G7) nations agreed to release 100 million barrels of diesel and crude oil from emergency reserves and vowed not to restrict energy exports. However, they did not disclose the breakdown of volumes or the participating countries.

The IEA's governing board is expected to decide the details of the stocks release during their October 14-15 meeting. The G7, comprising the US, UK, Japan, Canada, and EU nations such as France, Germany, and Italy, will be involved. The EU's oil coordination group will also meet on Wednesday. The White House has not yet provided clarification on the details of the stock release.

Oil market participants and some EU officials are currently attempting to understand the finer points of the Friday announcement. Vitol CEO Russell Hardy stated that the commodities trading company is still trying to grasp the details of the stocks release, expressing that the announcement lacked transparency regarding release locations and quantities.

More information will likely emerge over the next two weeks through tenders from various bodies, revealing the exact amount of oil and its distribution.