G7 Unveils Plan to Release 100 Million Barrels of Oil and Diesel

The G7 group of advanced economies has announced a plan to release up to 100 million barrels of oil and diesel from their reserves over four months. The move is aimed at easing supply concerns that have driven global prices to record highs, particularly for diesel. According to the statement, the release will include 'a substantial release' of diesel within the first 20 days, with further releases as necessary.

The decision comes after US President Donald Trump threatened to ban diesel exports from the US if European countries did not agree to tap their own reserves. However, Trump later backtracked on his threat, saying that an export ban 'was never really on the table'. The G7 also reaffirmed its commitment to avoiding export restrictions on energy and energy products between member countries.

The announcement has already had some impact on oil prices, with Brent crude briefly dropping below $100 a barrel. However, prices have since risen again due to renewed tensions in the Middle East. European countries had pushed back against US pressure to release their diesel reserves, citing concerns about supplies from Russia and China. The G7 also emphasized its commitment to maintaining sanctions against Russia amid its ongoing war with Ukraine.