G7 moves to release up to 100m barrels

G7 countries have agreed to make their strategic reserves available over a four‑month period in an effort to ease tight fuel markets. A statement from the French presidency says the group will work in a coordinated manner to help bring down diesel prices, with the process overseen by the International Energy Agency. The plan allows for the release of up to 100 million barrels and is to be carried out together with partner countries.

The G7 statement indicates that releases will begin immediately and that a substantial volume of diesel will be frontloaded within the first 20 days. The group also committed to avoid measures that would restrict the exchange of energy and petroleum products between partner countries, seeking to preserve flows while additional supply enters the market.

The statement highlights the aim of making production more flexible at refineries to maximise output during the release period. Diesel has been at the centre of recent market tightness, prompting particular attention to boosting available volumes early in the programme. The emphasis on diesel reflects both industrial demand and the impact of fuel prices on transport and consumers.

U.S. President Donald Trump wrote on social media that Europe had agreed to release a massive amount of diesel oil and said the process would begin immediately. His comments followed the G7 announcement and underscored the focus on rapid deployment of diesel from European stocks.

Separate reporting indicates that EU governments have discussed a French proposal for structuring the overall release. Under that proposal, European countries would provide 50 million barrels of diesel, while members of the International Energy Agency would release 50 million barrels of crude oil. The report noted that this information had not been independently verified and that officials were not immediately available for comment.

These discussions would align the total volume with the up to 100 million barrels authorised by the G7, while dividing the contribution between refined product and crude. The potential split is aimed at addressing both immediate diesel shortages and broader oil supply conditions, though final implementation details have not been confirmed.

Oil prices fell on Friday morning after reports that EU states were considering the French proposal for coordinated releases of diesel and crude. Market participants responded to the prospect of additional supply from both European reserves and IEA members, contributing to the decline in crude prices.

In the UK, average diesel prices at the pump have risen to record levels, exceeding £2 per litre. While wholesale prices showed some declines following the G7 discussions, retail pump prices tend to lag changes in wholesale markets. The planned reserve releases are positioned as a near‑term measure aimed at easing elevated diesel costs in such markets.