G7 to release 100 million barrels of oil and diesel from strategic reserves
G7 nations have agreed to release 100 million barrels of oil and fuel from strategic reserves over four months to curb rising fuel prices, following U.S. pressure on France and Germany.
Leaders of the Group of Seven (G7) have agreed, in a joint declaration, to release 100 million barrels of crude oil and petroleum products from their strategic reserves over a four-month period. The move will be coordinated with the International Energy Agency.
During the first 20 days of the plan, G7 members and their partners intend to put "substantial" volumes of diesel fuel onto the market. The group also committed to aligning refinery maintenance schedules and avoiding restrictions on energy trade.
Pressure from Washington
According to sources cited by Reuters a day before the announcement, the United States had pressed France and Germany to tap their emergency diesel stockpiles in order to bring down global fuel prices, reportedly threatening a ban on diesel exports if the two countries refused to comply.
Why prices are climbing
Fuel prices have been climbing amid the U.S.-Israeli conflict with Iran and the ongoing war between Russia and Ukraine. These conflicts have pushed European countries to rely more heavily on fuel supplies from the United States.
U.S. President Donald Trump is seeking to bring down domestic fuel costs ahead of the midterm elections scheduled for November 3.
