G7 Agrees to Release Oil and Diesel Reserves After US Pressure

The Group of Seven (G7) countries agreed on Friday to release 100 million barrels of crude oil and diesel from emergency reserves, a move welcomed by US President Donald Trump as he seeks to ease soaring fuel prices linked to the Iran war.

The conflict prompted the largest-ever emergency oil stock release in March, coordinated by the International Energy Agency (IEA).

“Taking into account commitments that have already been fulfilled, we will implement our commitments with a coordinated release through the IEA of 100 million barrels,” the G7 said in a joint statement.

The release will begin immediately and continue for four months, with G7 members and partner countries planning a substantial initial diesel release within 20 days, the statement said.

The G7 did not specify how much crude, diesel or other petroleum products would be released, nor did it identify all participating countries.

“We will convene in the context of the IEA in the coming days to discuss the possibility of additional diesel releases as necessary,” the statement added.

Trump welcomed the move, writing on Truth Social that Europe had agreed to release a “massive amount” of its diesel stocks and that the process would begin immediately.

The US president is seeking to bring down domestic fuel prices ahead of the November 3 midterm elections.

The Trump administration had urged Germany and France to draw down emergency diesel inventories or potentially face a US ban on diesel exports, Reuters reported on Thursday, citing three people familiar with the discussions.

The G7 statement also said member states would avoid imposing energy export restrictions on one another.

Analysts at Energy Aspects described the announcement as largely political, saying the headline figure appeared aimed at discouraging the Trump administration from imposing restrictions on diesel exports.

Europe has increased imports of US diesel this year as supplies from Gulf producers have been disrupted by the Iran war.

EU governments on Friday discussed a French proposal for European countries to release 50 million barrels of diesel, while other IEA members would release 50 million barrels of crude oil, according to three sources familiar with the talks.

A 50-million-barrel diesel release would represent about 17% of the EU’s emergency diesel and gasoil stocks, according to Eurostat data, equivalent to roughly 3% of the bloc’s annual consumption.

US diesel futures fell following reports of the planned release, dropping more than 4% to $4.4491 a gallon. European benchmark diesel futures also declined by more than $90 per metric ton, according to LSEG data.

The IEA’s March emergency release involved 400 million barrels from strategic reserves across its 32 member countries.

IEA Executive Director Fatih Birol said this week that members had so far released around two-thirds of those volumes.