Brussels, Oct. 2 (SANA) Leaders of the Group of Seven (G7) agreed Friday to release about 100 million barrels of crude oil and diesel from strategic reserves in an effort to lower fuel prices and ease disruptions in global markets.
The decision came amid European concerns over a possible halt in US diesel exports to European Union countries.
In a statement issued after their meeting, as reported by Euronews, the G7 said it would immediately begin releasing oil and diesel over a four-month period in coordination with the International Energy Agency (IEA).
Large volumes of diesel will be released during the first 20 days, while the possibility of additional releases will remain open if market pressures persist.
Coordinated global response
The plan includes maximizing refinery operating rates, coordinating maintenance schedules to avoid additional supply shortages, and working with other producing countries to increase production of refined petroleum products, particularly diesel.
The G7 countries also pledged not to impose restrictions on energy exports among themselves and called on other producers to avoid measures that could further disrupt markets.
The group tasked the IEA with monitoring implementation of the agreement and assessing its impact, with a report to be issued within 20 days.
French President Emmanuel Macron said G7 leaders had agreed to act in a coordinated manner to help reduce prices of petroleum products, adding that the release of reserves would be carried out in cooperation with partners and under IEA supervision.
US coordination and European concerns
US President Donald Trump said European countries had agreed to release a “huge amount” of their diesel reserves, with the process to begin immediately.
The announcement came as Washington pressed its European allies to accelerate the use of their strategic reserves to contain price increases linked to the wars in Iran and Ukraine.
The European Commission had held a meeting with experts from EU member states to coordinate positions, while rejecting any potential ban on US diesel exports.
The commission warned that such a move could undermine confidence in the United States as a reliable partner.
Germany also called for avoiding steps that could further disrupt markets, while the European Union said it was prepared to take collective action in cooperation with the IEA.
European countries had discussed a French proposal to release about 50 million barrels of diesel reserves. According to informed sources cited in the report, however, proceeding with the measure was linked to obtaining US guarantees that Washington would not unilaterally halt diesel exports to Europe.
Impact on European markets
European countries are concerned about the consequences of a possible halt in US supplies, with the United States accounting for about half of diesel imports into the European Union.
The transport and agricultural sectors rely heavily on diesel, making any potential shortage a direct factor in higher operating costs and prices.
Diesel markets are facing additional pressure from Ukrainian attacks on Russian energy facilities and Iran’s closure of the Strait of Hormuz, while global fuel demand has increased ahead of winter.
The average diesel price at filling stations across the European Union reached 2.24 euros per liter, a new record, according to the report.
The crisis has also affected the European economy, with eurozone inflation rising to 3.8% in September, its highest level in three years.
Energy security commitments
In its statement, the G7 condemned Iranian attacks on neighboring countries, warning of their impact on international trade and energy security. It also called for restoring freedom of navigation in the Strait of Hormuz and noted US efforts to ensure the continued flow of trade through the waterway.
The group also reaffirmed its continued sanctions on Russia while working to limit the spillover effects of the crisis on fuel, gas and essential-goods markets.
H.H
