The G7 oil reserve release will put up to 100 million barrels of emergency crude oil and diesel into global markets after a sharp rise in fuel prices and concerns over supplies.
G7 leaders agreed to coordinate the release of strategic oil reserves following discussions over the global increase in diesel prices. French President Emmanuel Macron said the measures would focus particularly on diesel supplies.
Under the proposed plan, G7 countries and their partners will release about 50 million barrels of diesel and 50 million barrels of crude oil into global markets. The G7 oil reserve release is intended to increase fuel availability and ease pressure on petroleum prices.
The decision followed pressure on European countries to use their own emergency stockpiles after US President Donald Trump said he could restrict US diesel exports.
Macron said the G7 members want to โwork in a coordinated manner to help bring down the prices of petroleum products, particularly dieselโ. He also said a substantial amount of diesel would be released during the first 20 days, with ministers expected to consider further releases if necessary. โWe 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,โ Macron said.
French President Emmanuel Macron said G7 members and their partners plan to front-load a substantial amount of diesel during the first 20 days of the G7 oil reserve release. The coordinated approach is intended to bring additional fuel supplies into global markets quickly and ease pressure on diesel prices.
Macron also said ministers would discuss the possibility of further diesel releases if necessary in the coming days. The timeline places diesel at the centre of the emergency response as European countries face supply concerns and rising fuel costs.
The G7 oil reserve release will include approximately 50 million barrels of diesel and 50 million barrels of crude oil, according to the reported proposal. The G7 oil reserve release comes as European countries face pressure from higher diesel prices and limited supplies. Europe produces around 70% of the diesel it consumes through domestic refineries but relies on imports to cover the remaining demand.
Disruptions to fossil-fuel exports from the Middle East have affected refineries, while reduced output from Chinese and Russian refineries has added pressure to global fuel supplies.
US diesel exports also reached record levels earlier this year as refining disruptions tightened supplies in Europe and Asia. The resulting decline in US distillate stockpiles contributed to higher domestic diesel prices.
In the UK, average diesel prices reached a record ยฃ2 a litre, increasing costs for motorists and businesses that depend on diesel-powered vehicles.
Brent crude was trading above $100 a barrel on Friday. Prices initially fell following news of the G7 oil reserve release before rising again later in the day. The International Energy Agency previously coordinated a much larger emergency stockpile release in March, involving 400 million barrels of crude oil.
The latest G7 oil reserve release is expected to add supplies to global markets as governments attempt to manage continued disruptions and pressure on fuel prices.