Leaders of G7 nations have agreed to release up to 100m barrels of their emergency diesel and crude oil stockpiles after coming under pressure from US president Donald Trump to ease surging fuel prices.
The drawdown of reserves from some of the world’s largest economies will be coordinated by the International Energy Agency (IEA) and will take place within four months, according to France’s president, Emmanuel Macron.
Macron who is the current chair of the G7 which also includes the US, UK, Germany, Italy, Canada and Japan confirmed the move on Friday following a leaders’ video meeting. Macron said G7 nations wanted to “work in a coordinated manner to help bring down the prices of petroleum products, particularly diesel”.
Trump Pressure on G7 Countries
European countries had come under pressure from the White House in recent days to release emergency supplies or face a US diesel export ban. Trump has said he is considering stopping diesel exports to help lower domestic fuel prices before the US midterm elections in November.
“We have all committed together to releasing these strategic reserves in the proportions I mentioned, with a focus on diesel, and we are all committed to ensuring there are no export bans, and President Trump, in particular, was very clear on this point,” Macron said.
A US export ban would have presented a considerable challenge for Europe, which produces about 70% of the diesel it consumes from domestic refineries, but relies on imports to make up the shortfall.
Trump said in a post on his Truth Social platform that he welcomed the move stating “Europe has just agreed to release a massive amount of their heavily stocked diesel oil. The process will begin immediately.”
Brent crude oil was trading at just below $100 a barrel on Friday, compared with about $72 before the Iran war started.
