G7 Agrees to Release 100 Million Oil Barrels
G7 countries have agreed to release 100 million barrels of diesel and crude oil from emergency reserves amid rising fuel prices and US pressure on European nations.
Before the broader G7 agreement, European Union governments had discussed a French proposal for European countries to release 50 million barrels of diesel, alongside a release of 50 million barrels of crude oil by IEA members. A 50-million-barrel diesel release would represent approximately 17% of the EU’s emergency diesel and gasoil stocks, or about 3% of its annual consumption, according to Eurostat data cited by Reuters.
Fuel markets reacted to reports of the proposed releases. US diesel futures fell 3.25% to $4.49 per gallon, while European benchmark diesel futures declined by approximately $83 per metric tonne, or 5.75%, according to LSEG data cited by Reuters.
The coordinated release is intended to increase fuel availability and ease pressure on prices. However, the precise country-by-country contributions and the extent to which the release will add to previously announced commitments remain uncertain.