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G7 countries have agreed to release up to 100 million barrels of oil from strategic reserves over four months in a coordinated effort to bring down soaring energy prices, with a particular focus on diesel.
The release will be coordinated by the International Energy Agency (IEA), with a substantial amount of diesel to be made available within the first 20 days, according to a G7 statement.
French President Emmanuel Macron, who currently holds the G7 presidency, said the countries had agreed to act together to ease pressure on energy prices.
“We will implement our commitments with a coordinated release through the IEA of 100 million barrels to begin immediately over four months,” the statement said.
The move comes after growing pressure from Washington for countries to release strategic reserves as diesel prices rise and supplies tighten.
Earlier on Friday, the European Commission pushed back against what it described as US “threats” to force European countries to act.
But an overnight call between Macron and US President Donald Trump appears to have helped push Paris towards action, amid concerns over the impact of a possible US diesel export ban.
The G7 package also includes measures to increase refinery output and a pledge not to restrict trade in energy and oil products between partner countries.
The 100 million barrels would amount to roughly 830,000 barrels a day if released evenly over four months.
But the impact will depend on how quickly countries release their stocks and how much of the oil can ultimately be turned into diesel.
Strategic crude releases do not immediately translate into extra diesel supplies. Refineries must first process the crude, with capacity, logistics and the type of crude available all affecting how much fuel reaches consumers.
The release could provide some relief ahead of winter, when demand for diesel and other refined products typically increases.