Paris/Brussels, Oct. 2 (Jiji Press)–The leaders of the Group of Seven major democracies on Friday agreed to release 100 million barrels of oil from their strategic reserves through the International Energy Agency over the next four months, in an effort to ease tight supply and curb soaring diesel prices amid escalating tensions in the Middle East. The additional release will start immediately, taking into account the implementation of a coordinated release agreed upon in March. During the first 20 days, G7 countries and cooperating nations will bring forward planned diesel releases and put large volumes on the market. In a statement released after an online meeting on Friday, the G7 leaders reaffirmed that there will be no export restrictions on energy and related products among G7 countries, and called on all oil producers to “refrain from imposing bans that could exacerbate market tensions.” U.S. President Donald Trump said in a social media post: “Europe has just agreed to release a massive amount of their heavily stocked diesel oil. The process will begin immediately.” He later told reporters at the White House that the United States would not ban diesel exports. The Trump administration had urged Europe to release reserves by hinting at a ban on diesel exports to prioritize domestic supplies. The G7 countries will coordinate schedules to avoid overlap in routine refinery maintenance and temporarily increase operating rates where possible. They will also cooperate with countries that have large refining capacity to encourage them to boost production, especially of diesel fuel. Talks will be held within the framework of the IEA in the coming days, and additional diesel fuel releases will be considered if necessary. The G7 leaders called on the IEA to monitor the measures’ implementation and their impact on the market, and to compile within 20 days a report that includes measures to strengthen the response, such as replenishing stockpiles. France, which chairs the G7 this year, had previously proposed that European countries release 50 million barrels of diesel fuel and that IEA members release 50 million barrels of crude oil. However, Friday’s statement did not provide a final breakdown. In March, the IEA’s 32 member countries agreed to a record coordinated oil release of 400 million barrels after the conflict involving the United States, Israel and Iran caused oil prices to spike. END [Copyright The Jiji Press, Ltd.]
