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The group said it would begin with a substantial release of diesel within 20 days, with the remaining volumes to be released over the following four months.
A staff member hangs the South Korea’s national flag before the arrival of officials for a G7 Foreign Ministers’ meeting in Cernay-la-Ville outside Paris. (AFP file photo)
The Group of Seven (G7) nations have agreed to release 100 million barrels of oil and fuel products in the coming weeks, beginning with a major release of diesel as governments respond to a sharp rise in energy prices.
The move comes after US President Donald Trump pressed G7 leaders to act on rising fuel costs. The group said it would begin with a substantial release of diesel within 20 days, with the remaining volumes to be released over the following four months.
Trump said the diesel release would begin “immediately”, announcing the move on social media as his administration faces growing pressure over higher prices ahead of the November 3 midterm elections.
The average US diesel price stood at $6.37 a gallon on Friday, according to AAA, after reaching a record $6.52 on September 22. Prices have also climbed sharply across Europe.
Macron Says Release Should Ease Prices
France, which holds the G7 presidency, announced the decision after a video meeting of the group’s leaders chaired by President Emmanuel Macron.
Macron said the agreement demonstrated unity among the G7 and argued that the additional supply should improve liquidity in the energy market and help bring prices down.
“This common decision and this unity should bring down prices,” Macron said. “The volumes we’re releasing should also add liquidity to the market and bring down prices.”
The G7 comprises Canada, France, Germany, Italy, Japan, the UK and the US, with the European Union also represented.
The latest move follows a broader International Energy Agency plan announced in March to release 426 million barrels of oil and petroleum products to support global supplies. European countries had pledged around 92 million barrels under that plan, with a significant share involving refined products such as diesel.
Supply Disruptions Add To Fuel Price Pressure
The latest price surge has been driven by several factors beyond higher crude oil costs. Russia has restricted fuel exports following attacks on its refineries, tightening supplies available to countries that previously bought Russian diesel.
At the same time, fuel shipments from Gulf producers have fallen because of Iran war-related damage and disruptions to export routes.
US oil prices fell about 2% following the G7 announcement. However, analysts noted uncertainty over whether the 100 million barrels would be additional to the earlier IEA commitment or form part of the existing pledge.
Some US Republicans had urged Trump to restrict diesel exports to bring domestic prices down. The G7, however, agreed not to restrict energy exports among member countries.
(With inputs from AP)
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