G7 Oil Reserve Release Sparks Price Drop

Oil prices plummeted on Friday, October 2, after G7 countries agreed to release oil and diesel from their strategic reserves. The move aims to boost fuel supply and alleviate pressure on prices.

The coordinated effort, led by the International Energy Agency (IEA), involves releasing up to 100 million barrels of diesel and crude oil over four months. This includes an early release of 50 million barrels of diesel from European reserves and another 50 million barrels of crude through IEA members.

The decision was made in response to record-high diesel prices in the US, with the average price reaching $6.37 per gallon on Friday. The US government had urged its allies to boost fuel supplies amid the ongoing Middle East conflict, which has disrupted global oil flow and driven up prices.