The Group of Seven (G7) advanced economies has agreed to release up to 100 million barrels of crude oil and diesel from strategic reserves over the next four months, in a coordinated effort to ease mounting pressure on global fuel prices.
The move, which begins immediately, includes a substantial release of diesel within the first 20 days, with further releases possible if supply pressures persist.
G7 leaders announced the decision following a meeting chaired by French President Emmanuel Macron and coordinated through the International Energy Agency (IEA).
The G7 comprises the United States, United Kingdom, Canada, Japan, Germany, Italy and France, with the European Union also represented at its meetings.
The agreement comes after US President Donald Trump threatened to restrict US diesel exports as part of efforts to bring down fuel prices for American consumers.
Under the agreement, G7 members will not impose export restrictions on energy and energy products among themselves.
Trump had warned that the US could ban diesel exports if European countries failed to release more of their own reserves. Such a move could have increased supply available to US consumers while putting additional pressure on international markets.
On Friday, Trump said on social media that Europe had agreed to release a “massive amount” of its diesel reserves, adding that the process would begin immediately.
Later at the White House, however, he said an export ban had “never really been on the table”, describing the European decision to release fuel reserves as a positive development.
“Europe has a lot of diesel and they’re going to be making a major world contribution – and so are we,” Trump said.
The G7’s joint statement said the coordinated release would involve 100 million barrels over four months, with diesel releases brought forward during the first 20 days.
“We will implement our commitments with a co-ordinated release through the IEA of 100 million barrels to begin immediately over four months,” the leaders said.
The exact contribution from individual G7 members and partner countries, as well as the pace of subsequent releases, has yet to be disclosed.
The 100 million barrels will consist of both crude oil and refined diesel.
Macron said the coordinated action was designed to bring down petroleum product prices, particularly diesel.
UK Foreign Secretary Ed Miliband, who represented Britain at the meeting, said the measures would help stabilise energy supplies, strengthen supply chains and protect households and businesses from price shocks.
Diesel prices have surged amid disruptions to global energy supplies linked to the conflict in the Middle East, while reduced exports from major producers have further tightened the market.
Russia has also restricted diesel exports following attacks on its refineries by Ukraine, adding to international supply constraints. The G7 said sanctions against Russia would remain in place over its war in Ukraine.
The situation has been particularly challenging for countries that rely heavily on imported diesel.
In the UK, pump prices exceeded £2 per litre for the first time on Friday. More than half of the country’s diesel is imported, with about 31 per cent of those imports coming from the United States.
The US is a major supplier to the global diesel market. Its refineries produce roughly four to five million barrels of diesel and related products daily, while domestic consumption accounts for about 3.6 million barrels. Between 1.2 million and 1.5 million barrels are exported each day.
Avoiding a US diesel export ban therefore provides relief to countries that depend on American supplies.
