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The G7 has agreed to release up to 100 million barrels of oil over four months to combat soaring fuel prices and meet the energy supply demands, preventing potential export bans on energy and petroleum products between partner countries.
G7 countries have agreed to release up to 100 million barrels of diesel and crude oil from their reserves over four months to ease global energy supply concerns.
This decision comes amid soaring fuel prices and after clashes between European leaders and US President Donald Trump. The move aims to bring down petroleum product prices, which recently hit record highs, particularly diesel prices that rose sharply in Europe and the United States. The G7 includes the United States, France, the United Kingdom, Germany, Italy, Canada and Japan. The leaders also pledged not to impose export restrictions on energy products.
Fuel Prices Pressure G7 Leaders
This announcement comes after the US stepped up pressure on Europe to release strategic reserves and threatened a diesel export ban. US President Donald Trump is under political pressure in America over rising energy costs, which have been sparked by the US-Israeli war with Iran. European countries had come under pressure from the White House in recent days to release emergency supplies or face a US diesel export ban. Trump has said he is considering stopping diesel exports.
Diesel prices have hit a record high of two pounds a litre in the UK and $6.52 in the US, causing motorists to spend more on fuel. The G7 countries decided to release the oil reserves through the International Energy Agency (IEA) to begin immediately over four months, including a front-loaded substantial diesel release within the first 20 days. This coordinated release is intended to ease pressure on global fuel markets and bring down prices for consumers.
The leaders said there would be no ban on diesel exports between them.
G7 Rejects Energy Export Restrictions
"We reaffirm our commitment to refrain from export restrictions on energy and energy products between G7 countries and call on all producers to refrain from imposing bans that could exacerbate market tensions," the leaders said. Mr Trump said European countries had agreed to release a "massive amount" of diesel from their reserves. The process will begin immediately.
This move follows the largest release of government oil reserves in US history in March, when the US agreed to release 400 million barrels of emergency crude to help calm the oil price shock sparked by the US-Israeli attacks on Iran. The US-Israeli war with Iran has driven up energy costs worldwide, and Trump has tied the high prices to the conflict, arguing they are a necessary price for preventing Iran from obtaining nuclear weapons.
The national average for a gallon of diesel in the US was $6.37 on Friday, according to AAA, after hitting a record $6.52 on September 22. In the UK, diesel hit a record high of two pounds a litre on Friday, putting more pressure on motorists. The cost of filling up an average family car is now 110 pounds, according to the RAC motoring group, nearly 32 pounds more than before the Iran war.
Simon Williams, head of policy at the RAC, said: This is a pump price threshold that no one wanted to cross. Regular unleaded averaged $2.37 a litre at service stations nationwide in Australia in the week to Monday, September 28, up 10 cents a litre from the week earlier, according to the Australian Institute of Petroleum. Diesel rose even more sharply, increasing nearly 14 cents to $2.87 a litre.
Coordinated Oil Release Impacts Markets
Fuel Costs Shape US Politics Trump had a conversation overnight with Macron about the need to address rising fuel prices and the availability of petroleum products, according to the French Embassy in the US. The coordinated release of the oil reserves will likely ease the pressure on global fuel markets and bring down prices for consumers. The move is a rare coordinated action among major economies and follows the largest release of government oil reserves in US history in March.
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abcnews:G7 to release 100 million barrels of oil in bid to curb soaring pricesThis story was compiled and edited by the HeadTopics newsroom and HT AI from the reports above.
Diesel Prices Trump Economy Iran War Fuel Costs IEA Coordinated Release IEA Coordination Trump Midterms International Energy Agency Midterm Elections Economy G7 Oil Price Diesel Export Ban US-Israeli War With Iran Energy Supply
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