The Group of Seven nations agreed Friday to release 100 million barrels of reserves to address surging diesel fuel prices, following a push by the Trump administration for Europe to deploy its stocks. G7 leaders stated that the deployment will begin immediately and continue over four months, featuring a frontloaded substantial diesel release within the first 20 days coordinated through the International Energy Agency. Leaders indicated they will convene within the IEA context in the coming days to discuss potential additional diesel releases as necessary.
U.S. diesel prices reached highs in September and remained elevated Friday at $6.37 per gallon on average. The G7 members comprise France, Canada, Germany, Italy, Japan, the United Kingdom, and the United States, with France currently holding the group's presidency and the European Union participating in meetings. President Donald Trump stated prior to the announcement that Europe agreed to release a massive amount of heavily stocked diesel oil.
Global fuel supply constraints stem from attacks on Russian refineries and disruptions in the Middle East resulting from the Iran war. The Trump administration pressured Europe to release diesel stocks as an alternative to a U.S. export ban. Treasury Secretary Scott Bessent stated Thursday that U.S. partners in Europe should accelerate delivery on existing commitments and make additional supplies immediately available. G7 leaders agreed Friday to refrain from export restrictions on energy and energy products among member states and called on all producers to avoid bans that could worsen market tensions.
Trump faces political pressure from Republican lawmakers regarding fuel prices ahead of November midterm elections. The president considered an export ban, which was opposed by the U.S. oil industry and business community, before leaning against the measure due to potential effects on gasoline prices. The prospect of an export ban from the U.S. raised concern in Europe, as the U.S. supplied approximately half of the EU's diesel imports in August according to the International Energy Agency. EU trade chief Maros Sefcovic discussed diesel supplies and prices with U.S. Trade Representative Jamieson Greer at the G20 trade ministers meeting in Milwaukee, stating that any U.S. move to restrict diesel exports would be unexpected and negatively impact Europe's economic outlook.
IEA members previously agreed in March to make available 400 million barrels of crude oil and refined products to address supply disruptions from the Iran war. Europe pledged around 107 million barrels, with 68% as fuel, while Asia and Oceania made 108 million barrels available consisting of 40% fuel and 60% crude. The U.S. pledged 172 million barrels of crude, and the Americas provided another 23 million barrels. U.S. Energy Secretary Chris Wright stated Tuesday that the United States and Japan are delivering on commitments, while several European member countries have released only a fraction of their pledged crude and petroleum products, following a Department of Energy announcement regarding the release of up to 40 million barrels of crude under U.S. commitments from March.
