G7 to release 100 million barrels of oil and diesel reserves over four months
In short
The G7 said Friday it will release up to 100 million barrels of oil and diesel reserves over four months, with a substantial diesel portion front-loaded into the first 20 days and coordinated by the International Energy Agency. President Donald Trump said Europe had agreed to release a “massive amount” of its diesel stockpiles, after his administration pressed European partners and floated a US diesel export ban. US diesel prices hit record highs in September, with the documents tying the shortage to the war in Iran and to attacks on Russian refining capacity.
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The Group of Seven nations said Friday they will release up to 100 million barrels of oil and diesel reserves over the next four months, starting with substantial diesel volumes, in a move coordinated by the International Energy Agency. The joint statement, released by the Élysée Palace in Paris, said the deployment would begin immediately and include a “front-loaded substantial diesel release within the first 20 days by G7 members and partners.” UPI reported the group said a large portion of the reserves would be released within 20 days. [ 1 , 2 , 4 ]
The G7 said it will convene in the IEA context in the coming days to discuss the possibility of additional diesel releases as necessary. Its members are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, with France holding the group's presidency and the European Union also participating, CNBC reported. [ 2 , 4 , 7 ]
The announcement came as US diesel prices remained at record levels. CNBC reported US diesel averaged $6.37 per gallon on Friday after hitting record highs in September, while crude oil prices were sticking above $100 per barrel and Brent crude stood at $102 per barrel as of Oct. 3, according to TIME. CNBC attributed the supply crisis to Ukraine's attacks on Russian refineries and Middle East disruptions from the Iran war, and TIME cited a slowdown in oil passing through the Strait of Hormuz. [ 1 , 2 , 7 ]
President Donald Trump said Europe had agreed to release its stockpiles. “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil,” Trump wrote on Truth Social. “The process will begin immediately.” A White House official said Trump spoke with French President Emmanuel Macron the previous night and with G7 leaders Friday morning to negotiate the release of European diesel stockpiles, according to CBS News. Trump later told a campaign rally in Alabama that G7 nations had agreed to release diesel from reserves, NBC News reported. [ 2 , 4 , 5 , 7 ]
The documents describe pressure ahead of the decision. CNBC reported the Trump administration pressed Europe to release diesel stocks as an alternative to the US imposing an export ban, and Treasury Secretary Scott Bessent said Thursday that US partners in Europe “should accelerate delivery on their existing commitments.” Macron said the group was not pressured and that “the tone of our discussion was not one of threats; it was constructive.” Trump said Friday that an export ban “was never really on the table,” after CBS News reported he had threatened one in late September. The G7 statement said members would refrain from export restrictions on energy products and called on all producers to refrain from bans that could exacerbate market tensions. [ 1 , 2 , 4 , 7 ]
Reaction focused on how far the release would go. IEA executive director Fatih Birol said Friday that oil prices had already begun to fall following the announcement. Bloomberg Economics' Chris Kennedy told Bloomberg This Weekend that the release could provide near-term relief from record diesel prices but would not resolve supply constraints tied to the Iran war and attacks on Russian refining capacity. TIME reported the agreement could offer some relief for Americans even if the released diesel stays in Europe, because Europe buys some of its diesel from the US. [ 1 , 6 , 7 ]
Why it matters
The release is aimed at easing record diesel prices that the documents link to supply disruptions from the Iran war and strikes on Russian refining, and the International Energy Agency has said oil prices already began falling after the announcement. Bloomberg Economics said the move offers near-term relief but does not resolve the underlying supply constraints, and CNBC noted Trump faces political pressure from Republican lawmakers over fuel prices before November's midterm elections.
Key facts
- G7 leaders said in a joint statement that the group will release up to 100 million barrels of diesel and crude oil reserves over the coming four months. [ 1 , 2 , 3 , 4 , 7 ]
- A large portion of the release, described as a front-loaded substantial diesel release, is to begin immediately and take place within the first 20 days. [ 1 , 2 , 4 ]
- The International Energy Agency is coordinating the release, and the G7 said it will convene in the IEA context in coming days to discuss additional diesel releases if necessary. [ 1 , 2 , 4 , 7 ]
- G7 leaders said they would refrain from export restrictions on energy and energy products among members and called on all producers to refrain from bans that could exacerbate market tensions. [ 1 , 2 , 4 ]
- US diesel prices hit record highs in September and averaged $6.37 per gallon on Friday, according to CNBC. [ 2 ]
- President Donald Trump said Europe agreed to release a “massive amount” of its heavily stocked diesel oil, with the process to begin immediately. [ 2 , 4 , 5 , 7 ]
- The documents attribute the fuel supply crisis to Ukraine's attacks on Russian refineries and to Middle East disruptions from the Iran war. [ 2 , 7 ]
- IEA executive director Fatih Birol said Friday that oil prices had already begun to fall following the announcement. [ 1 ]
Confirmed by several sources
- G7 nations agreed to release 100 million barrels of reserves over four months, coordinated through the International Energy Agency. [ 1 , 2 , 3 , 4 , 7 ]
- The release is to begin immediately and includes a front-loaded substantial diesel portion within the first 20 days. [ 1 , 2 , 4 ]
- The G7 agreed to refrain from export restrictions on energy and energy products among member states. [ 1 , 2 , 4 ]
- President Donald Trump said Europe had agreed to release diesel from its stockpiles, beginning immediately. [ 2 , 4 , 5 , 7 ]
- US diesel prices reached record highs in September. [ 2 , 7 ]
Still unclear
- Which countries' reserves the barrels will be drawn from. UPI reported the G7 has not specified where reserves will be pulled from; Trump said a large amount would be released from Europe, but the documents do not confirm the volumes or locations.
- How much the release will lower prices. Bloomberg Economics' Chris Kennedy said it could provide near-term relief but would not resolve supply constraints tied to the Iran war and attacks on Russian refining; TIME framed the effect on Americans as an open question.
- Whether the United States seriously considered a diesel export ban. CBS News reported Trump threatened a ban in late September and said he had “called for” one, while on Friday he said “we were never going to do” it and that “it was never really on the table.”
What local media are saying
Timeline, local time
- UPI reports the G7 plan to release up to 100 million barrels of diesel and crude oil reserves over four months, with a large portion released within 20 days. [ 1 ]
- CNBC reports the G7 agreement to release 100 million barrels and says US diesel averaged $6.37 per gallon on Friday. [ 2 ]
- CNBC reports oil prices lower as the G7 prepares to release diesel stocks. [ 3 ]
- CBS News reports the G7 held a video conference Friday morning after an overnight call between French President Emmanuel Macron and Trump, and that Trump said on Truth Social that Europe would release diesel oil immediately. [ 4 ]
- NBC News reports Trump told a campaign rally in Alabama that G7 nations had agreed to release diesel fuel from reserves. [ 5 ]
- Bloomberg's Chris Kennedy says the release could provide near-term relief from record diesel prices but will not resolve supply constraints tied to the Iran war and attacks on Russian refining capacity. [ 6 ]
- TIME reports Brent crude at $102 per barrel as of Oct. 3 and notes the agreement could ease competition for US diesel even if the released fuel stays in Europe. [ 7 ]