G7 Releases 100 Million Barrels of Diesel as U.S. Prices Hold Near $6.37
Updated
Updated · CNBC · Oct 2
G7 Releases 100 Million Barrels of Diesel as U.S. Prices Hold Near $6.37
3 articles · Updated · CNBC · Oct 2
Summary
A 100 million-barrel G7 diesel release will start immediately and run for four months, with a substantial frontloaded tranche due within 20 days under IEA coordination.
The move follows Trump administration pressure on Europe to tap stockpiles instead of risking a U.S. export ban, while G7 leaders also pledged to avoid energy export restrictions among member countries.
U.S. diesel averaged $6.37 a gallon on Friday after hitting record highs in September, with supply strained by Ukrainian attacks on Russian refineries and Middle East disruptions tied to the Iran war.
Europe had particular reason to push for coordination because the U.S. supplied about half of EU diesel imports in August, making any American export curbs a direct threat to the bloc's economy.
Analysts at Macquarie said the shortage is ultimately a global energy problem, arguing that only a fuller recovery in Middle East flows through the Strait of Hormuz would durably ease fuel markets.