G7 Nations Release Oil Reserves Amid Fuel Price Concerns
The G7 nations have announced plans to release 100 million barrels of oil from their emergency stocks over the next four months, in an effort to ease high fuel prices. This move is part of a larger agreement between member countries of the International Energy Agency (IEA) to release 400 million barrels onto the market.
Most of the IEA's release has come from the US, which has already placed 130 million barrels of crude oil from its Strategic Petroleum Reserve on the market since March. The reserve now holds 284 million barrels, its lowest level since 1982.
President Trump has announced that he will not ban diesel exports from the US, pulling back from earlier consideration of possible export curbs. This move is seen as a response to pressure from Republican officials in Midwestern states who had sought limits on diesel exports as a way to cut fuel prices before the November midterm election.
The average retail cost of diesel in the US was $6.37 per gallon on Friday, according to AAA. Oil prices had moved higher earlier in the week following reports that the US was sending a third aircraft carrier to the Middle East, raising concerns about an impending increase in fighting.