G7 Plans Oil Release as Diesel Prices Rise
The Group of Seven nations have agreed to release 100 million barrels of oil and petroleum products over four months in response to rising fuel prices. The release will begin immediately, with a substantial amount of diesel scheduled for the first 20 days, according to a statement issued after talks chaired by French President Emmanuel Macron.
The International Energy Agency will coordinate the effort. It follows an earlier announcement that agency member countries would release 426 million barrels of oil and petroleum products to help stabilize the market. Diesel prices have risen globally amid an oil supply crunch linked to the continuing conflict between the United States and Iran.
In Canada, diesel averaged $2.63 per litre as of Thursday, according to the article, and cost about $2.71 per litre in Vancouver. Higher prices increase expenses for truck drivers and farmers who use diesel-powered vehicles and equipment. Those costs can also affect the transportation and production of goods.
U.S. President Donald Trump said the diesel release would happen immediately. His administration faces pressure over fuel prices ahead of the November 3 midterm elections. Trump has said prices will fall after the war, though the article reports no clear timeline for its end. A recent AP-NORC poll found that a majority of U.S. adults blame him for higher prices.
The agreement also addresses the possibility of restrictions on fuel trade. Trump had raised the idea of banning U.S. diesel exports to lower prices for American drivers, while experts warned such a ban could put further pressure on global supplies. In their statement, G7 members committed to avoiding restrictions on energy exports to one another and urged other producers not to impose bans that could worsen market tensions. France, which holds the G7’s rotating presidency, announced the agreement following a videoconference among the group’s leaders.