G7 Oil Release: 100 Million Barrels to Ease Diesel Crisis
The G7 has agreed to release 100 million barrels of oil and diesel over the next four months to calm surging fuel prices worldwide. The decision follows a direct threat from US President Donald Trump to ban American diesel exports unless European nations tapped into their own reserves.
The coordinated G7 oil release will begin immediately and run for four months, with a “substantial release” of diesel specifically within the first 20 days. G7 leaders confirmed the plan in a joint statement issued after an emergency meeting this week.
What the G7 Agreed On
The group, made up of the US, UK, Canada, Japan, Germany, Italy and France, with the EU also represented, said there would be no export restrictions on energy products between member states. That commitment directly addressed the standoff that had been building for days.
French President Emmanuel Macron, who chaired the G7 leaders’ meeting, confirmed the bloc had agreed to release reserves of up to 100 million barrels within four months. The release will be coordinated through the International Energy Agency (IEA), which oversees emergency stock mechanisms among member nations.
UK Foreign Secretary Ed Miliband represented Britain at the talks. He said the measures would stabilise energy supplies, build resilience in supply chains, and shield households and businesses from price shocks.
Why Trump Threatened a Diesel Export Ban
Trump had warned he would block diesel exports from the US unless European countries released more of their own stockpiles. The threat was aimed at easing pump prices for American consumers ahead of November’s midterm elections, though it risked pushing prices higher elsewhere, particularly in the UK and Europe.
His Treasury Secretary Scott Bessent argued that US farmers, truckers and businesses should not be left carrying the burden of rising fuel costs.
By Friday, the standoff had eased. Trump posted on social media that Europe had agreed to release a massive amount of its diesel stocks, adding that the process would begin immediately.
Speaking later at the White House, Trump said a US export ban on diesel was never really on the table. He credited Europe’s decision as a significant contribution to global supply, adding that the US would also be playing its part rather than pursuing export restrictions.
Impact on UK Diesel Prices
The dispute has real consequences for UK drivers. Diesel prices at UK pumps topped £2 a litre for the first time on Friday, a record that has piled pressure on households and the haulage industry.
Over half of the UK’s diesel is imported, and roughly 31% of those imports come from the US. That dependence made the threatened export ban especially alarming for British consumers and businesses reliant on diesel for transport and agriculture.
Macron said the coordinated G7 action would help bring down prices of petroleum products, particularly diesel. He noted that Trump had been clear in ruling out export bans during the discussions.
Global Oil Market Reaction
The announcement briefly pushed Brent crude below $100 a barrel, before prices climbed back to around $102 by Friday evening. Before the US and Israel’s actions against Iran, Brent had been trading at around $73.
Matt Smith, director of commodities research at Kpler, said oil prices had reversed course following renewed military activity between Saudi Arabia and the Houthis in Yemen. He explained that strategic stock release announcements in Europe had initially pushed prices down, but rumours of a Saudi offensive aimed at securing safe passage via the Bab-Al Mandeb strait reversed that trend.
Why Diesel Supplies Are So Tight
Diesel supplies have been squeezed from multiple directions. The conflict in the Middle East has restricted the flow of both crude oil and refined diesel onto global markets.
Russia, also a major diesel producer, has imposed its own export ban following Ukrainian attacks on its refineries, tightening supply further. G7 leaders confirmed they will maintain existing sanctions against Russia over its war in Ukraine, meaning Russian supply is unlikely to ease pressure anytime soon.
Diesel is also harder to refine than petrol. Combined with its heavy use in haulage and agriculture, that makes it very difficult to cut demand even when prices spike.
The Role of the US in Global Diesel Supply
The US remains one of the world’s leading diesel suppliers. Domestic refineries produce roughly four to five million barrels a day, according to the US Energy Information Administration (EIA).
Americans consume about 3.6 million barrels of that daily output. Refiners export the remaining 1.2 to 1.5 million barrels daily, making the US a critical supplier to global markets, including the UK.
What Happens Next
G7 leaders said they will coordinate refinery maintenance schedules to avoid multiple facilities shutting down at the same time. They are also encouraging countries with spare refining capacity to ramp up diesel production specifically.
It remains unclear exactly which partner countries will release stocks, or how quickly those releases will reach the market.
FAQs
How many barrels of oil is the G7 releasing?
The G7 has agreed to release up to 100 million barrels of oil and diesel over four months, coordinated through the International Energy Agency.
Why did Trump threaten to ban diesel exports?
Trump wanted European countries to release more of their own diesel stockpiles to ease pump prices for US consumers ahead of the November midterm elections.
Is the US banning diesel exports?
No. Trump confirmed at the White House that an export ban was never really on the table, and G7 members agreed not to impose export restrictions on energy products.
Why are UK diesel prices so high?
UK diesel prices passed £2 a litre for the first time due to tight global supply, driven by Middle East conflict, Russian export restrictions, and high import dependence, with 31% of UK diesel imports coming from the US.
When will the G7 diesel release begin?
The release began immediately, with a substantial diesel-specific release expected within the first 20 days, and the full 100 million barrel release spread over four months.
How much diesel does the US export?
US refineries produce four to five million barrels of diesel daily; after domestic consumption of about 3.6 million barrels, 1.2 to 1.5 million barrels are exported daily.
Why is diesel harder to manage than petrol?
Diesel is more difficult to refine than petrol, and because it’s essential to haulage and agriculture, demand is very hard to reduce even as prices rise.