G7 countries have reached an agreement to release up to 100 million barrels of oil from strategic reserves in a joint effort to curb rising energy prices, particularly diesel prices.
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The measure, which includes crude oil and diesel, will be implemented over a four-month period and coordinated by the International Energy Agency (IEA). According to the G7 statement, a significant portion of the diesel is expected to be made available during the first 20 days.
French President Emmanuel Macron, whose country currently holds the G7 presidency, said the group’s members had agreed on joint action aimed at easing energy costs.
“We will implement our commitments through a coordinated release, via the IEA, of 100 million barrels, starting immediately and continuing for four months,” the statement said.
The decision was made at a time when diesel prices have risen and supplies have tightened, while Washington has intensified calls for its allies to use their strategic reserves.
Earlier on Friday, the European Commission had opposed what it described as “threats” from the United States to force European countries to take such a step.
However, a telephone conversation held overnight between Macron and US President Donald Trump appears to have influenced Paris’s decision to support the agreement, amid concerns about the consequences of a possible US ban on diesel exports.
The G7 plan also includes steps to increase refinery production, as well as a commitment not to obstruct trade in energy and oil products between partner countries.
If the 100 million barrels were released evenly over four months, the volume would amount to around 830,000 barrels per day.
The measure’s final impact will depend on the pace of the reserve release and the amount of oil that can subsequently be processed into diesel.
Crude oil released from strategic reserves does not immediately translate into additional diesel supplies. It must first be processed at refineries, while processing capacity, logistics and the type of oil available determine the amount of fuel that reaches consumers.
The release of reserves could provide relief ahead of winter, a period when demand for diesel and other refined products typically rises.
