The Group of Seven (G7) countries said Friday that the nations would release 100 million barrels of oil and fuel products in the coming months, starting with “substantial” amounts of diesel. The move comes amid a global shortage largely attributed to slowdowns of the passage of oil through the Strait of Hormuz. A joint statement from the G7 nations—Canada, France, Germany, Italy, Japan, the United Kingdom, and the U.S.—confirmed that the International Energy Agency (IEA) will coordinate the release over the next four months.
It calls the move a part of “decisive, coordinated measures to stabilize immediate energy supplies” amid record-high fuel prices driven by the war in Iran and the recent escalation of fighting between Russia and Ukraine. Last month, the Trump Administration threatened to temporarily suspend its exports of diesel—earning immediate backlash from countries that rely on it, including Canada, Mexico, and much of Europe. European leaders and oil executives at the time said that such a ban would be disastrous for long-term oil flow.
For that reason, experts believe the threat helped pressure those nations to release their fuel reserves. The agreement could offer some relief for Americans even if the released diesel stays in Europe, because Europe buys some of its diesel from the U.S. Releasing European reserves could ease competition for U.S. diesel and potentially reduce prices for American buyers.
This is especially critical as the cost of Brent crude oil sits at $102 per barrel as of Oct. 3 and on-highway diesel hit a high of $6.529 per gallon as of last month, according to the U.S. Energy Information Administration. But how much relief consumers will actually see—and how quickly—will depend on what type of fuel is released, how much reaches the market and when, and whether supply disruptions persist.
Although the G7 shared how much fuel it would release, it did not specify the full breakdown of the release by fuel type. Its statement did say, however, that there will be a “frontloaded” and substantial release of diesel fuel within the first 20 days. While crude oil must be refined into products like gasoline before consumers can use it, diesel is already a finished fuel.
That means a diesel release could address the immediate shortage more directly. The planned release could help ease shortages of both crude oil and refined fuels, with supplies disrupted by the wars in Iran and Ukraine. The supply of crude oil has been heavily disrupted this year after the U.S. and Israel launched joint strikes that ignited a war with Iran in February.
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