G7 countries agreed to release “up to 100 million barrels” of oil and petroleum products from reserves within four months under the coordination of the International Energy Agency (IEA). Previously, Donald Trump threatened to ban the export of diesel fuel from the United States if European countries did not agree to bring more of their own reserves to the market.
After a meeting of G7 leaders, French President Emmanuel Macron said the countries had agreed to release “up to 100 million barrels” of oil and petroleum products from reserves within four months under the coordination of the IEA.
The UK was represented at the meeting by Foreign Secretary Ed Miliband. He said the measures would "stabilize energy supplies, improve the resilience of supply chains and protect households and businesses from price shocks."
Macron said the concerted action would help "bring down the prices of petroleum products, especially diesel." Noting the agreement not to impose export bans, Macron stressed: “President Trump, in particular, has been very clear on this issue.”
In a joint statement, G7 leaders said:
“We will implement our commitments through a coordinated release through the IEA of 100 million barrels, starting immediately and lasting four months. Including G7 countries and partners, there will be a significant initial release of diesel fuel within the first 20 days.”
It is not yet clear which partner countries will release their reserves and how quickly this will happen.
The G7 includes the US, UK, Canada, Japan, Germany, Italy and France. The European Union is also represented at the group's meetings.
Donald Trump has warned that he will ban US diesel exports unless European countries agree to bring more of their own supplies to market. This would ease price pressures for American consumers ahead of the November midterm elections, but would also lead to higher prices in other countries.
On Friday, Trump wrote on social media: “Europe just agreed to release a huge amount of its significant diesel fuel reserves. The process will begin immediately."
U.S. Treasury Secretary Scott Bessent said U.S. farmers, truckers and businesses "should not continue to bear the burden" as prices soar.
Later, speaking at the White House, Trump said that a ban on diesel exports "was never really considered seriously."
Referring to the G7's decision to release fuel from reserves, he added: "What Europe has done is remarkable."
“Europe has a lot of diesel and is going to make a significant contribution to global supply - as do we,” he said.
“And we will not impose an export ban. We will do what we have to do,” the head of the White House said.
Trump first said he supported a ban on diesel exports early last week. As recently as Thursday, he continued to consider the possibility as his administration pressed Europe to use its own stockpiles.
Diesel fuel is widely used in freight transportation and agriculture, so rising costs ultimately lead to higher prices for essential goods, including food.
100 million barrels will be a mixture of diesel and crude oil. The price of Brent crude, the global benchmark, briefly dipped below $100 a barrel but was back around $102 by Friday evening. Before the US and Israeli invasion of Iran, oil was trading at about $73 a barrel.
Matt Smith, director of commodity research at Kpler, said oil prices were rising again due to renewed attacks between Saudi Arabia and the Houthis in Yemen.
“Oil prices fell sharply after the announcement of the release of strategic reserves in Europe, but then turned around amid rumors that Saudi Arabia was planning an offensive in Yemen, seeking to restore a safe route through Bab al-Mandeb,” he said.
European countries opposed US threats to cut off supplies of American diesel fuel. This happened against the backdrop of a US-led war in the Middle East, as well as dwindling supplies from Russia and China.
G7 leaders also said they would coordinate refinery maintenance schedules to ensure multiple refineries were not shut down at the same time. In addition, countries with this capability will be encouraged to increase oil refining volumes, especially for the production of diesel fuel.
The end of the ban on US diesel exports will be a significant relief for countries reliant on imports of the fuel, including the UK, where pump prices topped £2 a liter for the first time on Friday.
More than half of the diesel fuel consumed in the UK is imported, with 31% of these imports coming from the US.
