Key facts
- G7 nations will release up to 100 million barrels of oil and diesel from reserves.
- The release is intended to bring down soaring energy prices, especially for diesel.
- The coordinated release will occur over four months, starting immediately.
- The International Energy Agency (IEA) will coordinate the release.
- A significant portion of diesel will be available within the first 20 days.
- G7 countries pledged to avoid export bans or restrictions on energy products among themselves.
The G7 nations have agreed to release up to 100 million barrels of oil and diesel from their strategic reserves over the next four months in a coordinated effort to combat rising energy prices. The move, announced after an emergency meeting, is particularly focused on easing the pressure on diesel supplies.
The release will be managed by the International Energy Agency (IEA), with a substantial amount of diesel to be made available within the first 20 days. French President Emmanuel Macron, who currently holds the G7 presidency, stated that the countries would act together to alleviate pressure on energy costs.
This decision follows increasing pressure from Washington for countries to tap into their strategic reserves as diesel prices climb and supplies tighten. A potential US ban on diesel exports had been a significant concern, with French President Macron calling such a move "catastrophic" for Europe, which relies heavily on imports.
In addition to the reserve release, the G7 package includes measures to boost refinery output and a commitment to avoid restricting energy trade among partner countries. This pledge to refrain from export bans is seen as a win for European nations that import significant amounts of oil and diesel from the US.