IEA to meet Wednesday on proposed oil and diesel stock release

Key facts

• The IEA governing board will meet Wednesday at 1300 local time.
• The meeting will discuss a proposed release of oil and diesel stocks.
• G7 nations agreed to release 100 million barrels of diesel and crude oil from emergency reserves.
• EU representatives discussed the proposed release on Wednesday morning.
• French President Emmanuel Macron said the release, coordinated by the IEA, will take place over the next four months, with an initial focus on diesel.

BRUSSELS, Oct 7 (Reuters) - The International Energy Agency's governing board is scheduled to hold an informal meeting on Wednesday at 1300 local time to discuss a proposed release of oil and diesel from emergency reserves, according to two European Union diplomats. Representatives of EU nations had already discussed this proposed release at a meeting on Wednesday morning.

The Group of Seven major economies agreed last week to release 100 million barrels of diesel and crude oil from emergency reserves, a move that came under pressure from US President Donald Trump. The agreement also included a pledge to refrain from energy export restrictions. However, there has been confusion within the oil and energy industry regarding the specific quantities Europe and the US plan to make available to address shortages and record-high prices.

According to people familiar with the matter, the IEA's Governing Board will have an initial discussion to establish more clarity on how to proceed with the releases. It is not yet clear if any decisions will be made at this meeting. The board's regularly scheduled quarterly gathering is set for the following week.

Earlier on Wednesday morning, the European Union’s Oil Coordination Group, comprising the European Commission and member states, was due to meet to coordinate the bloc’s position on the diesel stock release. Following the IEA meeting, the EU’s Energy Union Task force is scheduled to discuss the release at 4 p.m. Brussels time.

French President Emmanuel Macron stated after a G7 meeting on Friday that the release, coordinated by the IEA, will occur over the next four months, with a primary focus on diesel. This deal helped to alleviate concerns over potential threats from US President Donald Trump to implement a diesel export ban, which risked triggering a global supply crunch with severe economic consequences for Europe and Latin America. Diesel is essential for transportation, farming, and industry, and its prices have surged due to disruptions in supply from the wars in Iran and Ukraine, becoming a political concern for Trump ahead of the US midterm elections.