The Group of Seven said it would release 100 million barrels of diesel and crude from emergency reserves over four months through the IEA, citing price pressure linked to the war with Iran.
The Group of Seven said on Friday that member countries will release 100 million barrels of diesel and crude oil from emergency reserves over four months, coordinated by the International Energy Agency, Kyodo News reported. France, which holds the rotating G7 presidency, released the joint statement.
The statement said the governments had agreed on coordinated measures to stabilize immediate energy supplies, shield households and businesses from price shocks, and strengthen longer-term resilience. Kyodo linked the surge in prices to the U.S.-Israeli war with Iran.
The Financial Times reported that the United States backed down from a threat to ban fuel exports after the G7 decision, and that President Donald Trump called the European release of diesel a positive step. European bulletins also described the release as aimed particularly at diesel prices.
The G7 members are the United States, the United Kingdom, Japan, France, Canada, Germany and Italy. The reserve release is scheduled to run through the IEA rather than as separate national announcements.
Markets had already been trading with elevated crude and distillate prices before the announcement. Officials said the first purpose of the draw was to ease near-term supply pressure rather than to set a new long-term production policy.
People Sentiments Mixed
- The G7 joint statement said the release was meant to shield households and businesses from price shocks
- Trump called the European diesel release a great thing, the Financial Times reported