G7 Unveils 100 Million Barrel Diesel Release Amid European Shortage Crisis

The G7 and its partners have agreed to release up to 100 million barrels of emergency diesel and crude stocks over four months, aiming to alleviate a severe diesel shortage in Europe. The move is coordinated through the International Energy Agency (IEA), with an emphasis on diesel. French President Emmanuel Macron announced the plan, while US President Donald Trump welcomed it after his administration pressed Europe to draw down its emergency stocks.

The market reacted quickly, with European gasoil futures falling by over 4% and Brent crude dropping by $3 to below $100 per barrel. The release of diesel from government inventories will help bridge the supply disruption caused by refinery outages in the Middle East, Russia, and China, as well as export restrictions.

Eurozone countries have been struggling with a severe diesel shortage due to their high consumption levels and reliance on imports from the US. The release of emergency stocks buys time for refineries to get back into service but does not address the underlying issue of capacity shortages.