The Group of Seven (G7) nations have agreed to release 100 million barrels of oil and fuel products from strategic reserves over the next four months as governments respond to surging energy prices and growing concerns over global fuel supplies.
The coordinated release will be carried out through the International Energy Agency (IEA) and will begin immediately. A substantial portion of the reserves will consist of diesel, with G7 members and their partners expected to make a significant release within the first 20 days.
The announcement followed a videoconference of G7 leaders chaired by French President Emmanuel Macron, whose country currently holds the group’s rotating presidency. The G7 includes the United States, Canada, France, Germany, Italy, Japan and the United Kingdom, with the European Union also represented.
Diesel Prices Reach Record Levels
The decision comes as diesel prices have climbed sharply in the United States and Europe amid disruptions to global energy supplies. In the US, the national average price for diesel reached $6.37 per gallon on October 2, after hitting a record $6.52 on September 22, according to data cited by the Associated Press.
The rise in prices has been linked to disruptions caused by the ongoing conflict involving Iran, damage to energy infrastructure and interruptions to important shipping and supply routes. Russia’s restrictions on refined-fuel exports have also added pressure to diesel markets, increasing competition for available supplies.
Large Diesel Release Planned
Under the G7 agreement, the 100 million barrels will be released over a four-month period. However, the group has decided to front-load the response by releasing a substantial quantity of diesel during the first 20 days.
The G7 has also agreed to avoid energy export restrictions among its members and called on other producers to refrain from measures that could further tighten global supplies.
French President Emmanuel Macron said the coordinated action is intended to increase liquidity in energy markets and ease pressure on prices.
The IEA will monitor the implementation and assess the impact of the release on energy security and market stability. A follow-up report is expected within 20 days, including recommendations on replenishing emergency reserves and responding to future supply disruptions.
Questions Over Long-Term Impact
While the release could provide additional supplies to markets in the short term, analysts have raised questions about how effective the move will be if disruptions continue for an extended period.
The 100 million barrels represent roughly one day of global oil demand, meaning the impact could depend heavily on how quickly supplies are released and whether production and transportation disruptions ease.
The G7’s decision therefore represents an immediate attempt to stabilize fuel markets while governments continue to monitor the wider energy situation. Further releases could also be considered if diesel shortages and price pressures persist.