G7 Nations Agree to Release 100 Million Barrels of Oil and Diesel

The Group of Seven (G7) countries have agreed to release 100 million barrels of crude oil and diesel from emergency reserves over several months.

This decision follows pressure from United States President Donald Trump, who warned that Washington could restrict U.S. diesel exports if European governments refused to deploy their stockpiles. The G7, which includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the U.S., with the European Union also represented, stated the emergency release will begin immediately and continue over four months.

A substantial diesel release is planned within the first 20 days, with discussions for additional diesel releases as necessary to follow. Global oil and diesel prices have spiked due to the U.S. and Israel’s war on Iran, as well as Russia’s war on Ukraine. Global diesel prices hit a record high last Friday, with the average price for a gallon at $6.50, up from $5.61 a month earlier, according to the American Automobile Association (AAA).

Hamad Hussain, a climate and commodities economist at Capital Economics, stated that the emergency release would put some downward pressure on prices, particularly global diesel prices, but the impact would be short-lived as it is a temporary solution. The G7 agreement also reaffirmed that member countries would refrain from restricting energy exports to one another and urged other producers to avoid bans.