G7 Agrees to Release 100 Million Barrels of Oil and Diesel

The G7 has announced plans to release 100 million barrels of oil and diesel to address supply concerns and stabilize soaring prices. The initiative includes a substantial release of diesel within 20 days, with potential for additional releases as needed. The group of advanced economies, including the US, UK, Canada, Japan, Germany, Italy, and France, stated that the measure will begin immediately and last for four months. The decision came after US President Donald Trump threatened to ban diesel exports unless European countries agreed to tap their reserves.

Trump had warned of an export ban earlier in the week, but later clarified that it was never really on the table. He praised Europe’s agreement to release diesel, calling it a major world contribution. French President Emmanuel Macron confirmed the coordinated action, emphasizing that the move would lower fuel prices, particularly for diesel. The G7 also agreed not to impose export restrictions on energy products among its members.

The release of reserves will be coordinated by the International Energy Agency (IEA) and will include a mix of diesel and crude oil. While the price of Brent crude briefly dipped below $100 a barrel following the announcement, it rebounded to around $102 by Friday evening. Analysts noted that renewed strikes between Saudi Arabia and the Houthis in Yemen contributed to the price rebound.

UK Foreign Secretary Ed Miliband described the measures as a way to stabilize energy supplies and protect households and businesses from price shocks. The joint G7 statement underscored the immediate and coordinated nature of the release, though details on which partner countries will participate remain unclear.