Leaders of the Group of Seven nations have agreed to release up to 100 million barrels of crude oil and diesel from their emergency stockpiles in a coordinated effort to calm surging fuel prices and avert a supply crisis. The decision followed crisis talks on Friday, with French President Emmanuel Macron confirming that ministers from some of the world's largest economies had settled on the drawdown from strategic reserves.
The move came after US President Donald Trump repeatedly threatened in recent weeks to cut off supplies of American diesel to international markets. The prospect of an export ban had unsettled energy markets and pushed prices higher, prompting the emergency discussions among G7 members. Trump has since claimed that a diesel export ban was «never on the table», even as the G7 proceeded with its reserve release.
The agreement involves the United States, the United Kingdom, France, Germany, Italy, Japan and Canada. UK Foreign Secretary Ed Miliband said he hoped the deal would «shield households and businesses from price shocks». The release is intended to ease immediate shortages and dampen speculative pressure on fuel prices, which have reached record levels in some markets.
Diesel costs in the UK have hit a record £2 per litre, according to reports, intensifying pressure on consumers and businesses already grappling with elevated energy bills. The emergency stock release is designed to address both crude oil and refined diesel shortages, which have been driven by global supply disruptions and geopolitical tensions.
The coordinated drawdown represents one of the largest emergency releases from strategic petroleum reserves in recent years. It signals a unified front among major industrialised economies facing a common energy challenge, even as the US administration's messaging on export restrictions has shifted.
Analysts note that the release may provide short-term relief, but the underlying tightness in global refining capacity and logistical constraints could limit its lasting impact. The G7 has not specified a timeline for the release or how the barrels will be distributed among member states.
Macron's announcement followed a meeting of G7 ministers, underscoring the urgency with which governments view the current price environment. The move is also seen as a pre-emptive measure to prevent further economic damage as winter approaches in the northern hemisphere, when demand for heating oil and diesel typically rises.
The decision highlights the delicate balance between national energy security and international cooperation. While the US had floated the idea of restricting exports, the G7's collective action suggests a preference for coordinated market intervention over unilateral supply cuts. The release from reserves is expected to be monitored closely by energy traders and policymakers alike.
Further details on the implementation of the release, including the specific grades of crude and diesel to be made available, are expected in the coming days. The G7 has pledged to continue monitoring market conditions and stands ready to take additional steps if necessary.