G7 Nations Release 100 Million Barrels of Oil and Diesel Fuel

The G7 nations have announced that they will release 100 million barrels of oil and diesel fuel in an effort to address soaring prices. This move comes as a response to rising costs, with the national average for a gallon of diesel in the US reaching $6.37 on Friday, according to AAA.

The release is expected to start immediately, with 'substantial' amounts of diesel being released within the next 20 days and the rest over four months. President Donald Trump has stated that the release will happen 'immediately,' echoing a G7 promise to start 'immediately' with a 'frontloaded substantial release' of diesel.

The move is seen as an attempt by the G7 nations to stabilize the oil market, which has been affected by various factors including the eight-month-long war and trade battles. The release follows on from a March announcement that International Energy Agency member countries would release 426 million barrels of oil and products to stabilize the oil market.

However, experts have warned that this emergency release could be a short-term fix with potential long-term harm, as it may reduce retail fuel prices in the short term but eventually lead to reduced supplies of gasoline. Jim Krane, energy research fellow at Rice University's Baker Institute, stated that 'draining stocks will reduce retail fuel prices for a while, at the cost of leaving Europe with less emergency cover.'