G7 agrees to release 100 million barrels of diesel and crude from reserves

The Group of Seven agreed to release 100 million barrels of diesel and crude from strategic reserves over four months, with the first significant volumes of diesel to come within 20 days. Hankook Ilbo reported that the joint statement, issued after a meeting chaired by French President Emmanuel Macron, described the move as a coordinated step to stabilise energy supply and curb price spikes. Bloter and Maeil Business reported that the release would be carried out through the International Energy Agency. [ 1 , 2 , 3 ]

Hankook Ilbo, citing Reuters, reported that the US government told Germany and France the day before that Washington could ban diesel exports if they did not release stored diesel. Trump wrote on Truth Social that Europe had agreed to release large amounts of stored diesel and that the process would begin immediately. Bloter, citing Bloomberg, reported the next day that Trump said at the White House that the US would not impose an export ban, adding that Europe has plenty of diesel and that the US would contribute as well. Trump also said he had never seriously considered the ban, though Bloter noted he had said last month that he urged aides to support one. [ 1 , 2 ]

Fuel prices frame the decision. Hankook Ilbo, citing AAA, reported the US average diesel price at $6.40 a gallon on Oct 2, against $3.70 a year earlier. Bloter reported that US retail diesel reached $6.53 a gallon at one point and that European futures briefly exceeded $200 a barrel. Both outlets linked the timing to the November midterm elections, saying fuel and other consumer prices are a leading voter complaint. [ 1 , 2 ]

Oil prices fell after the agreement, Maeil Business reported, with WTI and Brent declining. Maeil Business also reported that G7 members agreed not to ban diesel exports among themselves and to coordinate refinery maintenance schedules to limit supply disruption. Hankook Ilbo reported that Europe banned Russian fuel imports and has faced disruption to Middle Eastern supply, leaving it heavily dependent on US fuel; Maeil Business put US supply at about one third of European diesel imports. [ 1 , 3 , 5 ]

Analysts and industry figures were cautious. Richard Bronze, co-founder of Energy Aspects, told CNN, as cited by Hankook Ilbo, that Europe had no choice but to comply, because a US export ban would set countries competing for the remaining supply. Joe DeLaura, Rabobank's global energy strategist, told Bloomberg the measure was a short-term fix that puts off the problem for one to two months, Bloter reported. Bloter also reported that executives at ExxonMobil, Chevron, Shell and Phillips 66 had asked the administration to consider alternatives, and that Energy Secretary Chris Wright and Interior Secretary Doug Burgum had raised internal concerns that cutting exports could reduce US production and hurt allies. [ 1 , 2 ]