G7 Intervention Sees Emergency Diesel Reserves Released Amid Oil Price Volatility

European governments agreed to release emergency diesel reserves as part of a G7 intervention aimed at easing pressure on fuel markets and preventing possible US restrictions on diesel exports.

The decision came after Brent crude futures fell $1.80, or 1.76%, to $100.50 a barrel, while US West Texas Intermediate dropped $2.02, or 2.18%, to $90.85, according to market data reported during Friday's trading.

The G7 leaders' statement on energy security and market stability said the releases would be coordinated through the International Energy Agency and would take account of commitments already made earlier this year. The package includes a substantial release of diesel over four months, with 100 million barrels of oil and petroleum products being released from emergency stocks.

The G7 has asked the IEA to monitor implementation and report within 20 days on whether further action is required and how emergency stocks should eventually be replenished.