G7 Nations Unite to Release 100 Million Barrels Amid Record-High Diesel Prices
The G7 nations have agreed to release 100 million barrels of oil and fuel products in the coming weeks, aiming to address record-high diesel prices. The move follows a March announcement that International Energy Agency member countries would release 426 million barrels of oil and products. France holds the rotating presidency of the G7 group and made the announcement after videoconference talks.
The statement said the common decision and unity should bring down prices, with Macron adding that the released volumes 'should also add liquidity to the market and bring down prices.' The release includes a substantial amount of diesel immediately, followed by 100 million barrels over four months. Diesel prices have hit records in Europe, with a national average of $6.37 per gallon in the U.S.
Some analysts warn that draining stocks could be a short-term fix but may eventually backfire by reducing supplies of gasoline since diesel output can't be lowered without cutting overall refinery production. Others say it's not the best time to fritter away emergency stocks, especially with no visibility on future prices or peace agreements.
The move comes as President Trump faces pressure to address surging prices ahead of the November 3 midterm elections, and his approval ratings on the economy hit a new low.