G-7 Nations Commit to Releasing 100 Million Barrels of Oil and Diesel Reserves
G-7 nations will release 100 million barrels of oil and diesel to combat surging fuel prices following intense pressure from the Trump administration.
POLICY WIRE — Washington, D.C. — Member nations of the Group of Seven reached a consensus on Friday to authorize the release of up to 100 million barrels of crude oil and diesel fuel. This coordinated effort aims to mitigate the impact of rapidly rising energy costs across global industrial economies.
The decision followed a videoconference led by French President Emmanuel Macron. U.S. President Donald Trump announced the development on Truth Social, stating, “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil.” He added that the initiative would commence immediately.
Energy markets have faced significant volatility since the U.S. and Israel launched attacks on Iran on Feb. 28. Furthermore, the escalation of the Russia-Ukraine conflict in July triggered a sharp spike in diesel costs, with U.S. prices climbing 70% to reach $6.37 per gallon since late February.
According to an official G-7 statement, the 100 million barrels will be distributed over a four-month period. The group emphasized that a substantial portion of the diesel supply is slated for release within the first 20 days of the program.
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This move follows a March initiative by the International Energy Agency, which authorized the release of 400 million barrels of crude oil. While that measure provided temporary relief, energy prices have remained persistently high.
Brent crude oil prices, which dipped 3% in anticipation of the announcement, continue to trade above $100 per barrel. , Brent prices have surged more than 60% since the beginning of the year.
The agreement arrives after the Trump administration exerted significant pressure on European allies, specifically Germany and France, to tap into their reserves. Treasury Secretary Scott Bessent stated on X late Thursday that American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage.
President Trump is currently weighing a potential U.S. diesel export ban, a move that would significantly impact the United Kingdom and European Union nations. In response, a European Commission spokeswoman stated on Friday morning that the EU fully rejects any ban on diesel, noting that such a policy would not be beneficial to anyone.
Reporting by Policy-Wire (PW)
