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Finance02 October, 20263 min read

G7 Agrees To Release 100 Million Barrels Of Oil And Diesel After Trump Pressure

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G7 will release up to 100 million barrels of diesel and crude oil. Release coordinated through the International Energy Agency over four months.

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G7 Agrees To Release 100 Million Barrels Of Oil And Diesel After Trump Pressure
Image: Wikālat al-Akhbār al-‘Iraqiyya (WĀ‘)}

G7 oil and diesel release

The Group of Seven agreed to release 100 million barrels of crude oil and diesel from emergency reserves over four months, starting immediately and including a “front-loaded substantial diesel release” within the first 20 days. President Donald Trump said the diesel release would happen “immediately,” and the G7 said it would implement its commitments “with a coordinated release through the IEA of 100 million barrels.” The G7 leaders tied the decision to pressure from Donald Trump and to disruptions linked to “the US and Israel’s war on Iran” and “Russia’s war on Ukraine,” which the sources said had pushed energy prices higher.

“We will implement our commitments with a coordinated release through the IEA of 100 million barrels.”
Al Jazeera

The G7 also said it would coordinate maintenance schedules across G7 refineries to prevent simultaneous capacity shutdowns and temporarily increase utilization rates where feasible. The sources also described the market backdrop as a diesel supply tightness tied to refinery damage and export disruptions, with AFP noting that “Diesel is now a macro problem as much as an energy one.”

Image from 13WHAM-TV
Image: 13WHAM-TV
Reporting for this sectionAl JazeeraAP News

Prices, pressure, and markets

Oil prices jumped on Thursday and settled up more than $4 a barrel, while global diesel prices hit a record high last Friday with the average price for a gallon (3.79 litres) of diesel at $6.50, up from $5.61 a month earlier.

Oil prices fell sharply on Friday, with West Texas Intermediate trading at $89.36 per barrel at 6:54 a.m. Eastern Time.

Image from 20Minutos
Image: 20Minutos

The national average for a gallon of diesel in the United States was $6.37 on Friday after hitting a record $6.52 on Sept. 22.

The sources also described the market backdrop as a diesel supply tightness tied to refinery damage and export disruptions, with AFP noting that “Diesel is now a macro problem as much as an energy one.”

The G7 move came after pressure from Donald Trump to tap the EU’s strategic diesel reserves or face a US ban on diesel exports, while the G7 statement said export restrictions among partners were off the table.

Reporting for this sectionAl JazeeraIndexBox

What happens next

The G7 asked the International Energy Agency to monitor the impact of the measures and to present a report within 20 days, and the sources said the IEA would coordinate the release. The final agreement did not specify how many barrels would correspond to each product or which countries would provide each volume, and it said the text took into account previously assumed reserve commitments. French President Emmanuel Macron told reporters, “We have agreed that there will be no ban or restrictions on exports between G7 members,” framing the decision as lifting the threat of a US embargo on diesel exports.

The European Commission stated that diesel supplies were stable at present despite higher prices and tighter global markets, while it also described Europe’s diesel stock situation as distributed among member states rather than held in a single centralized reserve. The sources also pointed to the risk that drawing down emergency stocks could be a short-term fix with longer-term consequences, with AFP quoting Stephen Innes of SPI Asset Management and IndexBox describing the possibility of a coordinated draw under US pressure.

Reporting for this sectionCriptoTendenciaLe Monde.fr