International Energy Agency member countries have agreed to release more than 20 million barrels of diesel “as soon as possible” as fuel prices soar globally, the group said in a statement Thursday.
President Donald Trump said earlier this month that Europe had agreed to deploy “a large stockpile of diesel oil.” The emissions detailed Thursday by the IEA are equivalent to less than one day of global diesel demand, or just over five days of U.S. consumption.
The IEA did not specify a schedule for the announcement in Thursday’s statement. On October 2, the G7 countries led by France announced they would deploy significant diesel stocks for 20 days. If that goes according to the IEA’s schedule, member countries will supply about 1 million barrels a day for almost three weeks.
Diesel futures were trading more than 1% lower at $4.86 on Thursday.
Headquartered in Paris, the IEA has more than 30 member countries, including the United States and major allies in Europe and Asia. The agency was created in 1974 in response to the Arab oil embargo and is tasked with maintaining energy security by deploying oil reserves in response to crises such as wars in the Middle East and Eastern Europe.
The Trump administration urged Europe to release its diesel stocks after U.S. prices rose to record highs in September. Retail prices for diesel averaged $6.32 per gallon Thursday, more than 70% higher than the same period last year, according to AAA.
President Trump is under political pressure to address fuel prices ahead of the U.S. midterm elections on Nov. 3. The president signed a diesel deal with Russia last week, but analysts say it will do little to lower prices.
Earlier this month, G7 countries led by France announced they would deploy stockpiles through the IEA in response to the diesel crisis, but did not specify specific quantities.
Andy Lipow, president of Lipow Oil Associates, said the IEA’s announcement “does not solve the fundamental problem of how to increase production at refineries that are suffering in the Middle East and Russia and are running at full capacity in the United States.”
Prices soared after Ukraine attacked Russian oil refineries and Iran and its Houthi allies attacked energy facilities around the Persian Gulf.
IEA member states agreed in March to deploy 400 million barrels of oil in response to global supply disruptions sparked by the Iran war. The group then announced Thursday that it had agreed to release the remaining 100 million barrels promised in March “in a timely manner consistent with national circumstances.”
The IEA board announced that 330 million barrels have been released so far. Some member states have deployed beyond their initial commitments, meaning total releases will exceed the 400 million barrels agreed in March.
