G7 governments agreed on Friday to release 100 million barrels of diesel and crude from emergency stocks over four months through the International Energy Agency, with a substantial diesel volume front-loaded in 20 days.
Group of Seven governments agreed on Friday to release 100 million barrels of diesel and crude oil from emergency reserves, Nikkei Asia reported, citing a joint statement and Reuters. The release is to run for four months through the International Energy Agency, beginning immediately, with a substantial share of diesel front-loaded within 20 days by G7 members and partners.
The statement did not say how the total would split between crude and diesel, or which countries would contribute. It said members would refrain from energy-product export bans, coordinate refinery maintenance and encourage higher refinery use where possible.
Xinhua, citing IEA executive director Fatih Birol, said about 325 million barrels had already been released under a collective action announced in March, more than 80 percent of a 400-million-barrel pledge. Nikkei linked the new request to fuel-price pressure associated with the Iran war and to U.S. urging.
EU governments discussed a French idea for Europe to release 50 million barrels of diesel and for IEA members to release 50 million barrels of crude, three sources told Reuters, Nikkei reported. That proposal was not confirmed as the final split.
Wood Mackenzie’s Alan Gelder told Xinhua a large diesel release could cut wholesale prices by 20 to 30 dollars a barrel, but he said the effect might be temporary while supply stays short of demand.