Trump went against G7 - allies made an important decision
The G7 countries have agreed to release up to 100 million barrels of oil from strategic reserves to curb rising diesel prices. The decision was made after US pressure on European countries. The International Energy Agency will oversee the process, the release will last four months, with a primary focus on diesel fuel.
The G7 countries have agreed on a coordinated release of up to 100 million barrels of oil from strategic reserves to curb rising diesel fuel prices. The decision was made after pressure from the United States on European countries amid reduced fuel supplies and rising prices. The International Energy Agency (IEA) will oversee the process, the release will last four months, with a primary focus on diesel. A significant volume is expected to hit the market within the first 20 days. French President Emmanuel Macron, whose country chairs the G7, said the participants agreed to act together to reduce pressure on energy prices. The package of measures also includes increasing output at oil refineries and a commitment not to restrict trade in energy resources between partner countries. Earlier on Friday, the European Commission rejected what it called "threats" from the US to force European countries to act, but a late-night phone call between Macron and US President Donald Trump helped move Paris. France feared the consequences of a possible US ban on diesel exports. With a steady release, this would amount to about 830,000 barrels per day, but the final outcome depends on the speed of reserve drawdown and refining capacity. The release could slightly ease the situation before winter, when diesel demand typically rises.