G7 agrees to release 100 million barrels of oil and diesel after US pressure

Group of Seven leaders agreed on Friday, 2 October, to release 100 million barrels of diesel and crude oil from emergency stocks through the International Energy Agency, aiming to ease a surge in fuel prices after US pressure on Europe, according to a G7 statement and reporting by BBC and Reuters.

Four-month release, diesel first

The coordinated release is to begin immediately and last four months, with a “frontloaded substantial diesel release within the first 20 days by G7 members and partners,” the leaders’ statement said. French President Emmanuel Macron, who chaired a virtual G7 meeting, said the action should help bring down prices of petroleum products, particularly diesel. The mix of diesel and crude was not broken down by country in the public statement.

No export bans among partners

G7 members pledged to refrain from imposing export restrictions on energy products among themselves — a clause linked to US President Donald Trump’s threat to ban US diesel exports if Europe did not tap more of its own stocks. After the deal, Trump said an export ban was “never really on the table” and called Europe’s release “a great thing,” BBC reported. The UK Foreign Secretary Ed Miliband said the measures would help stabilise supplies and shield households and businesses from price shocks.

Market and context

Brent briefly dipped below $100 a barrel before recovering toward about $102 on Friday evening, BBC noted. The Iran war had earlier triggered a March IEA-coordinated release of 400 million barrels; IEA Executive Director Fatih Birol said members had already released about two-thirds of that pact, Reuters reported. G7 leaders also said they would coordinate refinery maintenance schedules and keep Russia sanctions in place.