G7 leaders have agreed to release 100 million barrels of diesel stocks as surging prices and tight supply strain fuel markets. According to their joint statement, the deployment will begin immediately, run for four months, and include a “frontloaded substantial diesel release” in the first 20 days, coordinated through the International Energy Agency.
In the U.S., average diesel prices hit record highs in September and remained elevated on Friday at $6.37 per gallon. CNBC reported that the Donald Trump administration had been pressing Europe to release its own stocks as an alternative to a possible U.S. export ban.
Global fuel supplies are under pressure because of Ukraine’s attacks on Russian refineries and disruptions in the Middle East linked to the Iran war. Treasury Secretary Scott Bessent said U.S. partners in Europe should speed up delivery on existing commitments and make additional supplies available immediately.
The G7 statement also said member countries would refrain from imposing export restrictions on energy and energy products on one another. The group further urged all producers not to adopt bans that could worsen market tensions.
The issue is especially sensitive for Europe. International Energy Agency data show that the U.S. supplied around half of the EU’s diesel imports in August. Reuters reported that EU trade chief Maros Sefcovic said any U.S. move to restrict diesel exports would be unexpected and would hurt Europe’s economic outlook.
