G7 Agrees to Release 100 Million Barrels of Oil from Emergency Reserves
The Group of Seven (G7) leaders have agreed to release 100 million barrels of diesel and crude oil from emergency reserves, coordinated through the International Energy Agency (IEA), in an effort to alleviate pressure on global energy markets.
According to IEA Executive Director Fatih Birol, this is the largest move of its kind in the agency's history, with around 325 million barrels released so far under collective action announced in March. The G7 plan involves releasing the oil over four months, starting immediately, with a significant amount of diesel frontloaded within the first 20 days.
The decision comes as fuel prices continue to rise globally, particularly for diesel, due to disrupted refined-product supplies and threatened U.S. export restrictions. Net diesel and gasoil exports from Gulf countries have averaged just slightly more than a quarter of pre-U.S.-Iran war levels, while Ukrainian attacks on Russian refineries have added to the pressure on diesel supplies.
Europe has been particularly affected, with diesel prices doubling since the end of February when the U.S.-Iran conflict started. The European Commission said that the bloc had paid over 100 billion euros extra for fossil fuel imports since then without receiving additional energy. Analysts estimate that a major diesel stock release could lower wholesale prices by 20 to 30 dollars per barrel.