G7 Releases 100 Million Barrels to Ease Global Diesel Shortage

Leaders of the Group of 7 (G7) nations have agreed to release 100 million barrels of diesel and crude oil from their strategic reserves over the next four months. The decision comes in response to a supply crisis driven by conflicts in the Middle East, particularly disruptions in shipping through the Strait of Hormuz and attacks on energy infrastructure in Russia and Ukraine. The move follows a previous commitment in March to release 400 million barrels of oil and derivatives, with 325 million barrels already distributed, according to the International Energy Agency (IEA).

The updated release plan includes a significant front-loaded diesel release within the first 20 days to stabilize energy supplies and curb record-high prices affecting consumers worldwide. Diesel and related fuels account for approximately 28 percent of global oil demand but have faced severe supply constraints due to reduced international refinery capacity. The G7 emphasized that the current release represents over 80 percent of the original collective action pledged by the 32 member countries since March.

Following discussions among member states, the administration of Donald Trump confirmed that there would be no ban on diesel exports between the nations, averting potential trade restrictions previously raised by Washington. The G7 described the plan as decisive and coordinated, aiming to address immediate energy supply challenges and mitigate the impact of global price hikes.