Paris, Oct 03 (V7N)- G7 leaders have agreed to release up to 100 million barrels of crude oil and refined products, particularly diesel, from strategic reserves in a coordinated effort to ease pressure on global energy markets.
The decision was taken during a virtual meeting chaired by French President Emmanuel Macron on Friday. International Energy Agency (IEA) Executive Director Fatih Birol also participated in the meeting, which focused on severe pressure in global energy markets, especially diesel supplies.
Under the agreement, the reserves will be released through the IEA beginning immediately and over a period of four months. A substantial portion of the diesel release will be brought forward into the first 20 days by G7 members and partners.
The G7 leaders also agreed to refrain from imposing energy and energy-product export restrictions among member countries. They called for increased refinery utilisation and coordinated measures to strengthen supplies.
Macron said the coordinated release was intended to ease pressure on fuel prices. The French presidency said the measures were agreed in response to the sharp rise in global fuel prices linked to the situation in the Middle East.
US President Donald Trump welcomed the decision and said European countries would release a large amount of diesel from their stockpiles. He also said the United States would not impose restrictions on diesel exports and that the country's Strategic Petroleum Reserve would be replenished.
The announcement followed pressure over fuel supplies and prices amid disruptions to global energy flows. The IEA said diesel markets remain particularly tight, with restrictions on refined-product flows contributing to higher prices.
Oil prices declined after the G7 announcement. Reuters reported that the coordinated reserve release was aimed at stabilising markets, while other market reports also recorded declines in both Brent and West Texas Intermediate crude following the decision.
The G7 has also asked the IEA to monitor the implementation and market impact of the measures and report on the results within 20 days. The group said it would consider additional diesel releases if necessary.
The effectiveness of the coordinated release will depend on how quickly the reserves reach the market and how global supply disruptions develop in the coming months.
END/SMA/AJ
