Leaders of the Group of Seven (G7) nations have agreed to release up to 100 million barrels of crude oil and diesel from their emergency reserves in a coordinated effort to ease soaring fuel prices, following pressure from United States President Donald Trump.
The release, which will be coordinated by the International Energy Agency (IEA), is expected to take place over four months, with a substantial portion of the diesel supplies scheduled for release within the first 20 days.
French President Emmanuel Macron, the current chair of the G7, announced the agreement on Friday following a virtual meeting of the group’s leaders. The G7 comprises the United States, United Kingdom, France, Germany, Italy, Canada and Japan.
Macron said that the countries had agreed to coordinate the release of strategic reserves to help bring down petroleum prices, particularly diesel, amid mounting pressure on global energy markets.
“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.”
Emmanuel Macron
The agreement also includes measures to increase refinery production and maintain the flow of energy supplies between participating countries. Macron said that G7 members had committed to making production more flexible, allowing refineries to operate at maximum capacity, while avoiding restrictions on the international trade of petroleum products.
The decision follows mounting pressure from Washington for European countries to release emergency fuel reserves amid rising energy costs. Trump has also considered restricting diesel exports from the United States in an effort to lower domestic prices ahead of the country’s midterm elections in November.
The prospect of an American export ban had raised concerns among European governments and energy analysts, given the continent’s reliance on imported diesel to supplement domestic production.
Although European refineries supply approximately 70 per cent of the continent’s diesel consumption, imports remain essential to meeting demand. A restriction on American exports could therefore intensify competition for available supplies, potentially pushing prices higher across international markets.
The G7 leaders have also agreed to consider additional diesel releases if market conditions require further intervention, with discussions expected to continue in the coming days.
Trump welcomed the agreement in a post on his Truth Social platform, describing the planned release of European reserves as a significant step towards addressing rising fuel costs.
“Europe has just agreed to release a massive amount of their heavily stocked diesel oil. The process will begin immediately.”
Donald Trump
The coordinated release is intended to increase the availability of petroleum products and ease immediate pressure on fuel markets. However, concerns remain about whether the intervention will provide lasting relief if the underlying disruptions to global energy supplies persist.
The announcement comes as rising diesel prices place increasing pressure on motorists and businesses, particularly in Europe, where fuel costs have climbed sharply. In the United Kingdom, the average price of diesel reached a record £2 per litre on Friday, according to figures cited by the RAC motoring group.
The increase has pushed the cost of filling an average family car to approximately £110, nearly £32 more than before the Iran war, adding to the financial burden on households and transport-dependent businesses.
Analysts Warn G7 Oil Reserve Release May Not Resolve Global Energy Crisis
Despite the G7’s agreement to release emergency fuel reserves, analysts have warned that the move may provide only temporary relief, arguing that the underlying problem extends beyond diesel shortages to wider disruptions in global energy supplies.
Walt Chancellor of Macquarie Group opined that the United States’ energy challenges could not be resolved solely through the release of petroleum reserves, pointing instead to the broader difficulties affecting international energy markets.
“The core issue the US faces is not a diesel problem. Nor is it a refined product problem. It may not even be a petroleum problem. It is a global energy problem.”
Walt Chancellor
He argued that restoring oil flows through the Strait of Hormuz and out of the Middle East would be central to easing supply constraints, warning that measures focused solely on releasing existing reserves would have limited effects.
“So what is the solution then? In short, more oil through the strait of Hormuz and out of the Middle East. Anything short of that is really just shuffling deck chairs.”
Walt Chancellor
The Strait of Hormuz is a critical maritime passage for international energy shipments, making disruptions to traffic through the waterway a significant concern for global oil and fuel markets.
Chancellor’s assessment shows the limitations of strategic reserve releases as a response to prolonged supply disruptions. While additional supplies could help ease immediate shortages and moderate price pressures, their impact may be short-lived if the flow of oil from major producing regions remains constrained.
The G7’s decision therefore comes amid questions about how effectively emergency stockpiles can stabilise energy markets while broader supply challenges persist. The extent of any price relief will depend partly on the availability of additional supplies and developments in international energy transportation.
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