G7 countries agreed on Friday to release 100 million barrels of stockpiles to combat rising diesel fuel prices, after the Trump administration urged Europe to deploy stockpiles.
G7 leaders said the deployment would begin immediately and continue for four months, with “a significant diesel release brought forward within the first 20 days” coordinated through the International Energy Agency.
“We will meet in the context of the IEA in the coming days to discuss the possibility of additional diesel emissions, if necessary,” G7 leaders said in a joint statement. U.S. diesel prices hit a record high in September and remained high on Friday at an average of $6.37 per gallon.
The G7 members are France, Canada, Germany, Italy, Japan, the United Kingdom, and the United States. France currently holds the chairmanship of this group. The European Union is also participating in the meeting.
President Donald Trump said shortly before the G7 announcement that Europe had “agreed to release a lot of its stockpiled diesel oil.” The world is facing a fuel supply crisis due to the turmoil in the Middle East caused by Ukraine’s attacks on Russian oil refineries and the Iran war.
The Trump administration is pressuring Europe to release its diesel stocks as an alternative to a U.S. export ban. Treasury Secretary Scott Bessent said Thursday that U.S. partners in Europe should “accelerate implementation of existing commitments and make additional supplies available immediately to address ongoing disruptions.”
G7 leaders agreed on Friday to “refrain from imposing export restrictions on energy and energy products” among their members, according to a joint statement. They also called on “all producers to refrain from imposing bans that could exacerbate market tensions.”
President Trump is facing increasing political pressure from Republican lawmakers to address rising fuel prices ahead of November’s midterm elections.
The president said last week that he was considering an export ban, a move staunchly opposed by the U.S. oil industry and broader business community. President Trump has since opposed the export ban, citing the potential impact it would have on gasoline prices.
EU exposure to the US
The prospect that the world’s largest diesel exporter would implement a complete ban sparked alarm across the Atlantic. The United States supplied about half of the EU’s diesel imports in August, according to the International Energy Agency, highlighting the exposure of the 27 member states to a possible U.S. export ban.
EU Trade Representative Maros Sefcovic said he had discussed diesel supplies and price increases with US Trade Representative Jamison Greer.
“We have every interest in working together to bring down prices, whether it’s diesel or other products from the oil and gas supply,” Sefcovic told reporters at the G20 trade ministers’ meeting in Milwaukee, according to Reuters.
He added that any move by the US to restrict diesel exports would be unexpected and would have a negative impact on Europe’s economic outlook.
IEA emergency release
IEA members agreed in March to make available 400 million barrels of crude oil and refined products to help deal with supply disruptions caused by the Iran war.
Europe pledged about 107 million barrels, 68% of which was fuel. Asia and Oceania had 108 million barrels available, consisting of 40% fuel and 60% crude oil.
The US promised 172 million barrels, all of which was crude oil. Another 23 million barrels came from the Americas.
U.S. Energy Secretary Chris Wright said Tuesday that while “the United States and Japan are delivering on their commitments,” “several European member states have released only a fraction of the crude oil and oil products they promised.”
Wright’s comments came after the Department of Energy announced it would release up to 40 million barrels of oil starting in March under U.S. commitments.
