G7 agrees 100-million-barrel oil release to cool record diesel prices

The G7 has agreed a coordinated release of 100 million barrels of crude oil and oil products from emergency stocks over four months, front-loading diesel within the first 20 days, in a bid to bring down soaring fuel prices (Wall Street Journal).

French President Emmanuel Macron said after Friday’s virtual session of the major economies that the countries agreed to “take no measures to restrict the exchange of energy and petroleum products between partner countries” — appearing to end, for now, the threat of a US ban on diesel exports.

President Trump wrote on Truth Social that Europe “agreed to release a massive amount of their heavily stocked Diesel Oil,” adding: “The process will begin immediately.”

White House National Economic Council director Kevin Hassett, who had been pressing allies to put more refined products on the market, told Fox Business: “We’ve been talking with our European allies all week, and they have been really accommodative,” adding the move would “have a massive positive effect” (Fox Business).

The G7 joint statement said: “We agreed on decisive, coordinated measures to stabilize immediate energy supplies, shield households and businesses from price shocks, and strengthen the long-term resilience of global energy systems.”

The wars in Iran and Ukraine have squeezed exports from two of the world’s biggest diesel-producing regions, sending prices to records. Trump had backed a US diesel export ban last week before reversing course after oil majors warned it would backfire and raise prices for American consumers.