G7 Agrees to Coordinated 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 to address rising fuel prices. France, which holds the G7 presidency, said the release would begin immediately and include a substantial amount of diesel within the first 20 days.
The International Energy Agency will coordinate the release by G7 members and partners. It follows a March announcement that agency members would release 426 million barrels of oil and petroleum products to help stabilize markets.
The decision comes amid a global oil supply crunch linked to fighting between the United States and Iran in the Middle East. Diesel and gasoline prices have risen during the eight-month conflict. In Canada, diesel averaged $2.63 per litre on Thursday, according to the report, and cost about $2.71 per litre in Vancouver. Higher diesel costs affect truck operators and farmers, who use the fuel for transportation and equipment.
U.S. President Donald Trump said the release would start immediately. His administration faces pressure over fuel costs ahead of the November 3 midterm elections. Trump has said prices will fall after the war, although the article reports no indication of when it might end. An AP-NORC poll cited in the report found that most U.S. adults blame Trump for higher prices.
The agreement also addresses energy trade. G7 members said they would refrain from restricting energy exports to one another and urged other producers to avoid bans that could add to market tensions. Trump had recently raised the possibility of restricting U.S. diesel exports, a proposal that experts quoted in the report warned could further increase global prices.
French President Emmanuel Macron chaired the leaders’ video conference following a conversation with Trump about fuel prices and petroleum supplies.