G7 to Release 100 Million Barrels of Diesel and Crude After Trump Pressure
Summary
- The G7 said it had agreed to release 100 million barrels of stockpiled diesel and crude oil over four months.
- The group said it would prioritize large releases of diesel during the first 20 days to address supply shortages.
- News of the stockpile release pushed global oil prices lower, sending Brent crude and WTI prices down.
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The Group of Seven agreed to release 100 million barrels of stockpiled diesel, crude oil and other fuels over four months after the U.S. threatened to halt diesel exports.
The G7 said after an Oct. 2 meeting chaired by French President Emmanuel Macron, whose country holds the rotating presidency, that it would jointly release 100 million barrels of diesel, crude and other fuels through the International Energy Agency. During the first 20 days, the group will prioritize large diesel releases to ease supply shortages.
The agreement came as the U.S. raised the prospect of banning diesel exports to Europe. The Trump administration had pressed Europe to tap its reserves, saying it could block U.S. diesel shipments if countries failed to act. Europe depends on the U.S. for about one-third of its diesel demand, and any halt in exports would leave the region facing a severe shortage.
Trump said on Oct. 2 that he would not impose an export ban and called Europe's decision to release stockpiled diesel a "great thing." Oil prices fell on the news. Brent crude for December delivery slipped 0.06% to $102.25 a barrel, while West Texas Intermediate for November delivery fell 1.90% to $91.11.
Lee Hye-in, Hankyung.com reporter hey@hankyung.com
Korea Economic Daily
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