G7 to Release Up to 100 Millions of Barrels of Diesel, Crude

The Group of Seven nations are to release as much as 100 million barrels of emergency oil and diesel stocks after pressure from the Trump administration to quell rising fuel prices.

The release, being coordinated by the International Energy Agency, will take place over the next four months, Emmanuel Macron, France’s president told journalists in a briefing on Friday. He is also the current chair of the G7.

The G7 would like to trigger a drop in fuel pries, he said.

The decision came after the US floated the possibility of a debilitating diesel-export ban if European countries didn’t release more supplies. Such a move would threaten a crucial source of supply for the continent, which leans heavily on imports to cover a diesel-production shortfall.

The IEA already coordinated a plan to release of 400 million barrels in March soon after the Iran war broke out, but US President Donald Trump has criticized Europe for not making those barrels available fast enough.

“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.

Trump said in a social media post on Friday that he welcomed the latest action.

“Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil,” Trump said. “The process will begin immediately.”

Diesel’s premium over crude, a key measure of market strength, slumped as traders priced in the extra supply.