The G7 announced plans to release up to 100 million barrels of diesel and crude from strategic reserves over four months, with a large portion to be released within 20 days to ease surging fuel costs. The International Energy Agency will coordinate distribution, and member states agreed there would be no export bans among G7 countries. Initial market reaction showed oil prices beginning to ease after the announcement, though officials have not specified which national stocks will be tapped.
G7 to Release Up to 100 Million Barrels of Diesel and Crude to Curb Surging Fuel Prices
Diesel prices were reaching record highs around the world as the G7 announced it would release up to 100 million barrels of diesel and crude oil on Friday. File Photo by Bonnie Cash/UPI
Oct. 2 (UPI) — The Group of Seven announced Friday that it will release up to 100 million barrels of diesel and crude oil from strategic reserves in an effort to dampen soaring fuel prices.
The drawdowns will be implemented over the next four months, with a substantial portion scheduled for release within 20 days, the G7 said. Diesel prices were hitting record levels worldwide as the announcement was made, while crude remained above $100 per barrel.
Coordination and Export Policy
The International Energy Agency (IEA) will partner with the G7 to coordinate the timing and distribution of the releases. In their joint statement, G7 leaders said they had agreed there would be "no restriction or bans on exports among G7 countries."
French President Emmanuel Macron: "The tone of our discussion was not one of threats; it was constructive."
The G7 did not specify which national stocks would be tapped. In a social media post, U.S. President Donald Trump asserted that a large share of the reserves would come from Europe: "Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately."
Market Reaction and Context
Market participants reacted quickly: International Energy Agency chief Fatih Birol said Friday that oil prices had already begun to ease following the announcement. Analysts have pointed to geopolitical uncertainty, including tensions in the Middle East, as a major driver behind recent price spikes.
Automobile Association President Edmund King said he was hopeful the G7 action would help calm global fuel markets. "The global uncertainty from the conflict in the Middle East and other factors have already affected fuel prices, but we hope the markets will respond to the additional supply," King said.
What remains unclear: The G7 has not named which countries' strategic reserves will be used, nor detailed the exact split between diesel and crude or the precise timing of each tranche beyond the 20-day and four-month windows.
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