The Financial Times reported that Washington has backed off a threatened fuel-export ban after G7 countries agreed to release 100 million barrels of diesel and crude.
The Financial Times led its US page on Sunday with a report that the United States has backed down from a threat to ban fuel exports after the G7 agreed to release 100 million barrels. President Donald Trump called the European decision to release diesel from strategic reserves a great thing, the FT said.
G7 leaders agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves, coordinated through the International Energy Agency, Xinhua and other outlets reported. Releases were to start immediately and run over four months, with a substantial amount of diesel front-loaded in the first 20 days. The statement did not list country shares or the split between diesel and crude.
The move followed pressure from Washington over high fuel prices and disrupted refined-product supplies linked to the Iran war. In March the IEA coordinated a record pledge of 400 million barrels; Executive Director Fatih Birol said about 325 million of that had been released, more than 80 percent. Members also agreed to coordinate refinery maintenance and avoid restricting energy exports to one another.
Wood Mackenzie analyst Alan Gelder estimated a major diesel release could cut wholesale prices by 20 to 30 dollars a barrel, while warning the effect may be temporary if supply stays short of demand.
Further diesel releases could be considered if needed. The G7 did not set a review date in the statements available on Sunday.