G7 governments agreed to release up to 100 million barrels of crude oil and diesel from emergency stocks over four months, coordinated by the IEA, after US pressure over fuel prices.
Group of Seven leaders agreed on Friday to release 100 million barrels of diesel and crude oil from emergency reserves, with the International Energy Agency coordinating the move, Xinhua reported from Brussels. The release is to run over four months, starting immediately, with a substantial volume of diesel front-loaded in the first 20 days.
The G7 did not say how the total would split between diesel and crude, or which countries would contribute, Xinhua said. Members also agreed to coordinate refinery maintenance, raise utilization where possible and avoid energy-export restrictions among themselves. French President Emmanuel Macron said the release was meant to send a clear signal to markets, the Australian Financial Review reported, citing Bloomberg.
The decision followed pressure from US President Donald Trump to bring down fuel prices. After the announcement, Trump withdrew an earlier threat to ban US diesel exports, according to accounts carried by Xinhua. The Iran war had already prompted an IEA-coordinated pledge of 400 million barrels in March; IEA head Fatih Birol said about 325 million barrels of that earlier action had been released.
Xinhua quoted Wood Mackenzie analyst Alan Gelder estimating a major diesel stock release could cut wholesale prices by 20 to 30 dollars a barrel, while warning the effect may be temporary because diesel supply remains below demand.
Further diesel releases could be considered if needed, the G7 said. The statement did not name a new enforcement date beyond the immediate start of the four-month window.