G7 countries agree to release 100 million barrels of diesel and crude oil after US pressure
USO•G7 countries agreed to release 100 million barrels of diesel and crude oil from emergency reserves, with releases starting immediately and lasting four months. They also pledged to refrain from energy product export restrictions among themselves.
1. Release details
The G7 said the release would be coordinated through the International Energy Agency and would begin immediately, lasting four months. A substantial amount of diesel is to be released within 20 days, but the statement did not specify volumes by product or participating countries.
2. US pressure
The United States pressed the European Union to draw down emergency diesel inventories, warning that failure to act could lead to a US diesel export ban. The G7 said members would refrain from imposing energy product export restrictions among themselves.
3. Stocks and prices
The agreement follows a 400-million-barrel emergency stock release coordinated by the IEA in March. IEA Executive Director Fatih Birol said members had released about two-thirds of that amount. US diesel futures fell 3.25% to $4.49 a gallon, while European diesel futures fell roughly $83 per metric ton, or 5.75%.
