Trump says Europe to release diesel reserves into global market

WASHINGTON: European countries are set to begin releasing significant quantities of diesel from emergency stockpiles after G7 leaders agreed on a coordinated release of up to 100 million barrels of crude oil and petroleum products to ease pressure on global fuel markets.

US President Donald Trump welcomed the decision, saying Europe had agreed to release a large amount of its diesel reserves and that the process would begin immediately. The announcement followed an emergency G7 meeting focused on rising energy prices and concerns over fuel supplies.

Under the agreement reached on October 2, the release will be coordinated through the International Energy Agency (IEA) and will take place over four months. A substantial portion of the diesel supplies is expected to be released during the first 20 days in an effort to provide faster relief to markets.

The G7 statement said the measures are intended to stabilize immediate energy supplies and reduce the impact of sharp price movements on households and businesses. The group also agreed to coordinate refinery maintenance and encourage higher production of refined petroleum products, particularly diesel.

The seven-nation group further committed to avoiding export restrictions on energy products among G7 members. Leaders also said they would consider additional diesel releases if market conditions require further action.

The move comes amid significant disruption in global energy markets. The G7 has linked the current instability to broader geopolitical tensions and disruptions to energy trade, while calling for the restoration of navigation through the Strait of Hormuz, a key route for global oil supplies.

Diesel prices have risen sharply in several major markets in recent weeks, increasing costs for motorists, transport companies, farmers and businesses. The United Kingdom, for example, saw average diesel prices reach record levels, adding to pressure on consumers.

The latest announcement follows an earlier IEA-coordinated emergency oil release in March, when member countries agreed to make hundreds of millions of barrels available amid severe energy-market disruption.

Analysts have noted that releasing strategic reserves can provide additional supplies in the short term, but the longer-term stability of fuel markets will also depend on oil production, refinery capacity and the restoration of normal international energy flows.

For now, the G7 initiative marks a major coordinated effort to increase diesel and petroleum supplies as governments seek to contain the impact of the global energy shock.