G7 to Release 100 Million Barrels of Oil and Diesel to Lower Fuel Prices
The Group of Seven wealthy democracies announced that they will release 100 million barrels of oil and diesel fuel after prices soar. The plan involves deploying the reserves over a four-month period, beginning with a frontloaded substantial release
of diesel within the first 20 days.
The coordinated action follows intense pressure from the U.S. administration, which pushed European officials to tap into emergency diesel stocks or face a potential ban on U.S. exports of the fuel.
Macron Coordinates G7 Talks to Lower Oil Prices
France holds the rotating presidency of the G7 group and coordinated videoconference talks that led to the announcement. French President Emmanuel Macron stated that the decision should bring down prices
and add liquidity to the market.
Following the announcement, Brent crude futures lost 6 cents to close at $102.25 per barrel, while U.S. West Texas Intermediate crude shed $1.76 to settle at $91.11 per barrel.
High Fuel Costs Pressure Trump Before Midterm Elections
In the United States, the national average for a gallon of diesel reached US$6.37, following a record high of US$6.52 on September 22. U.S. President Donald Trump and the Republican Party face mounting pressure ahead of the Nov. 3 midterm elections as fuel costs and economic approval ratings hit new lows. Treasury Secretary Scott Bessent stated that American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage.
European benchmark diesel prices have more than doubled since the start of the U.S.-Iran war in late February. Because the United States supplies roughly half of the European Union’s diesel imports, analysts noted that European officials had little choice but to comply with demands to release reserves rather than risk a crippling U.S. export ban.