G7 to Release Up to 100 Million Barrels of Oil, Diesel Reserves to Cool Fuel Prices
PARIS, Oct. 3 — The Group of Seven said Friday it will release up to 100 million barrels of crude and diesel from emergency reserves over the next four months, coordinated by the International Energy Agency, in a bid to ease the worst diesel squeeze in years.
The plan, announced after a virtual G7 leaders’ meeting convened by French President Emmanuel Macron, will front-load diesel deliveries in the first 20 days. The G7 also pledged not to impose energy export restrictions among its members and urged all producers to avoid bans that could tighten markets further.
U.S. President Donald Trump said after the announcement that a U.S. diesel export ban — floated earlier this year as domestic fuel costs hit records — was “never really on the table.” Washington had pressed European allies to tap their stockpiles instead of restricting American shipments.
Markets reacted immediately. European diesel futures fell as much as 8%, U.S. diesel futures dropped more than 5%, and Brent crude slipped below $103 a barrel. Analysts called the move a political and market-calming step rather than a full fix.
“It takes the upside out of diesel, but it doesn’t rebuild refining capacity or end the supply shock,” said one London-based energy trader.
Europe stands to benefit most: the region relies heavily on U.S. diesel, and winter demand is approaching. The United States keeps export channels open and shields refiners from curbs. Importers such as India, Japan, South Korea and China get indirect relief through lower global spot prices, while OPEC+ and sanctioned exporters lose some pricing power.
The G7 stopped short of naming country-by-country volumes. Diplomats said roughly half the package could come from European diesel stocks, with the rest from IEA-member crude reserves.
Bottom line: the release buys time, not energy security. If Middle East supply stays disrupted, the 100-million-barrel cushion covers only about one and a half days of global consumption.