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The Group of Seven wealthy democracies will release 100 million barrels of oil and fuel products, starting with substantial amounts of diesel, to bring down record high prices.
The Group of Seven wealthy democracies said Friday they plan to release 100 million barrels of oil and fuel products in the coming weeks, starting with substantial amounts of diesel after fuel prices soared.
G7 Announces Immediate Diesel Release
French President Emmanuel Macron, whose country holds the rotating G7 presidency, said the diesel release would happen immediately. He echoed a G7 promise to start immediately with a frontloaded substantial release of diesel within the next 20 days and the rest over four months. The announcement came after videoconference talks that Macron presided over. The G7 countries are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, plus European Union representation.
The release follows a March announcement that International Energy Agency member countries would release 426 million barrels of oil and products to stabilize the oil market. European Union countries committed about 92 million barrels, a promise weighted toward refined products made from crude such as diesel. This common decision and this unity should bring down prices, Macron said. The volumes we are releasing should also add liquidity to the market and bring down prices.
In the U.S., the national average for a gallon of diesel was $6.37 on Friday, according to AAA, after hitting a record $6.52 on Sept. 22. Diesel prices have hit records in Europe, too. President Donald Trump announced the action Friday on social media. His approval ratings on the economy hit a new low, according to recent polling.
Trump Faces Economy Approval Pressure
The president has grown increasingly frustrated with what he sees as a disconnect between his achievements and the public's view of his work. This week he gave himself an A-plus for his work on the economy but said we are doing an extremely poor job of promotion.
Besides his call with Macron, Trump on Friday called in to the meeting with the G7 leaders to negotiate the release of European diesel stockpiles, according to a White House official who was not authorized to speak publicly and spoke on the condition of anonymity. Earlier, Macron spoke with Trump about the need to address rising fuel prices and the availability of petroleum products, according to the French Embassy in the U.S. Macron on Friday then chaired the videoconference of G7 leaders to discuss the issue.
In addition to the rise in the price of the crude oil from which diesel is made, other factors include Russia's decision to ban exports due to Ukrainian drone strikes on its refineries. Europe does not import Russian diesel, but other buyers of Russian diesel such as Turkey and Latin American countries must now compete with Europe for available barrels. The U.S. had considered banning exports of diesel to try to bring domestic prices down.
Export Limits Raise Market Concerns
But the G7 statement said the group agreed not to limit energy exports to each other. Oil market analysts warn a U.S. export ban could lower prices in the short term but eventually backfire by reducing supplies of gasoline since diesel output cannot be lowered without also cutting overall refinery production. Trump announced the action as he tries to bolster his party's chances for keeping control of the U.S. House and Senate in the November elections.
The president's approval ratings on the economy hit a new low, a cost Trump has repeatedly said is worth it for making sure Iran does not obtain nuclear weapons. A cost Trump has repeatedly said is worth it for making sure Iran does not obtain nuclear weapons. Leicester reported from Paris. AP writer Michelle L. Price contributed to this report. AP Business Writer David McHugh contributed from Frankfurt, Germany.
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CTVToronto:G7 nations will release 100 million barrels of oil and diesel fuel after prices soarThis story was compiled and edited by the HeadTopics newsroom and HT AI from the reports above.
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