G7 coordinates 100 million barrel reserve release as diesel supply tightens
The four-month plan includes a substantial diesel release in its first 20 days, but analysts say it may ease market pressure without fixing the supply shortfall.
The Group of Seven has agreed to coordinate an immediate release of 100 million barrels of oil and diesel from emergency reserves through the International Energy Agency, with the release spread over four months. The decision follows rising energy prices amid supply disruptions linked to the wars involving Iran and Ukraine, Al Jazeera reported.
The G7 said a substantial volume of diesel would be released within the first 20 days. Members will discuss further releases as needed, but the group has not specified how much each country will contribute or set volumes for any additional drawdown.
The plan also calls for G7 members to coordinate refinery maintenance, raise utilisation where feasible and avoid restrictions on energy exports among themselves. The measures are intended to limit disruption to supply while reserves enter the market.
Brent crude briefly fell below US$100 a barrel after the announcement before rising to about US$102. French President Emmanuel Macron predicted the release would lower petroleum prices, particularly diesel, but the early market movement did not establish whether that would happen.
Analysts cited by Al Jazeera said the release could ease pressure but would not resolve the underlying supply shortfall. Diesel demand remains high, including for agriculture and freight, while the G7 has yet to determine whether further releases are needed.
