G7 To Release 100 Million Barrels Of Oil, Diesel As Fuel Prices Soar

The Group of Seven has agreed to release 100 million barrels of oil and fuel products from emergency reserves as governments seek to ease pressure on energy markets and soaring diesel prices.

The coordinated release will begin immediately and continue for four months, with a substantial volume of diesel expected to reach the market within the first 20 days, according to a statement issued after a virtual meeting of G7 leaders. The International Energy Agency will coordinate the programme.

The G7 also agreed that its members would refrain from imposing restrictions on energy exports between one another, while calling on other producers to avoid measures that could further strain fuel markets.

The decision followed pressure from US President Donald Trump, who had threatened to restrict US diesel exports unless European countries released more fuel from their reserves.

Trump later said the threatened export ban would not go ahead, describing the European decision to release diesel stocks as a positive development.

The G7 comprises the United States, United Kingdom, Canada, France, Germany, Italy and Japan, with the European Union also represented at its meetings.

Diesel is widely used by the transport, agriculture and industrial sectors, meaning sustained increases in its price can raise the cost of moving goods and producing essential commodities.

The G7 has also asked the IEA to monitor the impact of the reserve release and provide a follow-up report within 20 days.