G7 Nations Release 100 Million Barrels in Bid to Curb Soaring Diesel Prices

The Group of Seven (G7) wealthy democracies announced they will release 100 million barrels of oil and diesel fuel in the coming weeks to address soaring prices. The move follows a March announcement that International Energy Agency member countries would release 426 million barrels of oil and products to stabilize the market.

The G7 decision includes 'substantial' amounts of diesel, with President Donald Trump stating the release will happen 'immediately.' This echoes the G7's promise to start with a 'frontloaded substantial release' of diesel within the next 20 days and the rest over four months.

Average US diesel prices have hit record highs at $6.37 per gallon, according to AAA. The national average for a gallon of diesel in the US was $6.52 on September 22. Diesel prices have also reached records in Europe.

Michael Lynch, distinguished fellow at Energy Policy Research Foundation, believes the release could lower prices by 25-50 cents per gallon after a few weeks. However, Jim Krane, energy research fellow at Rice University's Baker Institute, cautions that draining emergency stocks can leave countries with less cover in the future.