G7 countries agree to release diesel and oil stocks after US pressure
USO•G7 countries agreed to release 100 million barrels of diesel and crude oil through a coordinated program beginning immediately and lasting four months. The statement did not specify the volumes or participating countries; US and European diesel futures fell after the discussions were reported.
1. Coordinated stock release
The Group of Seven agreed to release 100 million barrels of diesel and crude oil from emergency reserves and pledged to refrain from energy export restrictions. The release will begin immediately and last four months, with a substantial amount of diesel due within 20 days, the G7 statement said. It did not provide a breakdown of volumes or identify participating countries.
2. US export ban dropped
President Donald Trump said the United States would not impose a diesel export ban. The US had pressed the European Union to draw down emergency diesel inventories, while warning that failure to act could lead to a ban.
3. Fuel futures fell
US diesel futures fell 3.25% to $4.49 a gallon after reports of the discussions, while European diesel futures dropped roughly $83 per metric ton, or 5.75%. The agreement follows a 400-million-barrel emergency stock release coordinated by the International Energy Agency in March; the agency’s executive director said members had released about two-thirds of that amount.
