G7 Moves to Release 100m Barrels of Oil, Diesel Amid Global Energy Crisis

The Group of Seven nations have agreed to release 100 million barrels of oil and fuel products from reserves in an effort to ease pressure on global energy markets as fuel prices continue to surge.

The coordinated release will begin immediately and take place over four months through the International Energy Agency, according to a joint statement issued after G7 leaders held a virtual meeting on Friday.

The plan includes a substantial, frontloaded release of diesel within the first 20 days by G7 members and partner countries. The leaders also said they would consider additional diesel releases if market conditions require further intervention.

The decision comes amid severe disruption to global energy supplies and sharp increases in the prices of crude oil and refined petroleum products.

The G7; comprising Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, with the European Union also represented, said the measures were intended to strengthen immediate energy supplies, protect households and businesses from price shocks and improve the resilience of global energy markets.

French President Emmanuel Macron, whose country holds the G7’s rotating presidency, said the coordinated action should increase liquidity in the oil market and help bring prices down.

The G7 also agreed to coordinate refinery maintenance schedules to prevent several facilities from shutting down at the same time. Countries with significant refining capacity are being encouraged to increase production of refined products, particularly diesel.

The group further reaffirmed that its members would not impose energy export restrictions on one another and called on other oil-producing countries to avoid measures that could worsen supply pressures.

The agreement followed growing pressure for governments to intervene as diesel and crude prices climbed amid disruptions linked to the war involving Iran and the wider crisis affecting shipments through the Strait of Hormuz. Reuters reported that the announcement was aimed at stabilising global energy markets.

Diesel has become a particular concern because of its importance to freight transport, agriculture, industry and other parts of the global economy. Prices have reached record levels in parts of the United States and Europe, increasing costs for businesses and consumers.

The United States had also pushed European countries to release more diesel from their strategic stocks. President Donald Trump had raised the possibility of restricting US diesel exports as prices increased, while the G7 agreement instead reaffirmed the principle of maintaining energy trade among member countries.

However, questions remain over the exact additional impact of the latest release. The Associated Press reported that analysts were seeking clarification on whether the 100 million barrels represents a new commitment or part of the larger stock-release commitments announced by IEA members earlier in March.

In March, IEA member countries had agreed to release 426 million barrels of oil and petroleum products to help stabilise markets, with European Union countries accounting for about 92 million barrels of that commitment.

The G7 has asked the IEA to monitor the implementation and market impact of the measures, with a follow-up report expected within 20 days.

The leaders said they would continue monitoring developments and were prepared to adjust their response if energy-market pressures persisted.