G7 countries have agreed to release up to 100 million barrels of oil and petroleum products from strategic reserves over four months. The decision is intended to ease pressure on the fuel market and prices.
French President Emmanuel Macron announced the agreement following a videoconference of Group of Seven leaders. U.S. President Donald Trump also confirmed the information, NBC News reports.
The G7 statement said that up to 100 million barrels could be released onto the market over four months. About half of that volume will consist of diesel fuel. A significant share of the diesel is expected to be released within the first 20 days, while the remaining oil will be supplied to the market throughout the four-month period.
Macron and Trump held a phone call the day before focused on rising fuel prices. Washington urged European countries to accelerate the release of strategic reserves amid a diesel shortage and rising prices.
“Europe has just agreed to release a massive amount of its diesel fuel, which it has in large reserves… The process will begin immediately”
Donald Trump, U.S. President
Supply disruptions and rising prices
The fuel crisis emerged due to supply disruptions amid the U.S.-Iran conflict, restrictions on Russian exports, and the suspension of Chinese supplies. Since the beginning of the year, Brent crude prices have risen by more than 60%.
Experts noted that releasing 100 million barrels of diesel fuel over four months would “essentially replace Russian exports.” At the same time, the G7 statement says that diesel will account for about half of the total volume of released reserves.
Earlier, Irish Finance Minister Simon Harris said that the causes of the turmoil in energy markets were the closure of the Strait of Hormuz and Trump’s war with Iran, rather than Ukrainian strikes on Russian oil refineries.
