The Group of Seven (G7) countries have agreed to release 100 million barrels of crude oil and diesel from emergency reserves over the next four months, in a coordinated effort to ease pressure on global energy markets. The decision was announced after a virtual meeting chaired by French President Emmanuel Macron on October 2, as oil and diesel prices remained elevated amid disruptions to international energy supplies. The release will be coordinated through the International Energy Agency (IEA), with a substantial portion of diesel stocks to reach markets during the first 20 days.
The G7 includes the United States, United Kingdom, Canada, France, Germany, Italy and Japan, with the European Union also represented. The group also agreed to avoid energy export restrictions between members, while asking the IEA to monitor the impact of the stock release.
Energy markets have been under pressure because of disruptions linked to the conflict involving Iran and Israel, while the Russia-Ukraine war has also affected global fuel supplies. The situation has been particularly difficult for diesel markets, with reduced supplies from major producers and exporters.
Several reports pointed to disrupted Middle Eastern exports, reduced Russian diesel shipments and lower Chinese exports as factors tightening the market. Diesel demand has also remained relatively strong, including from agriculture and transportation.
The coordinated release is scheduled to begin immediately and continue for four months. The G7 statement says the 100 million barrels will be released through the IEA, while a substantial diesel release will be front-loaded into the first 20 days.
The countries have also agreed to coordinate refinery maintenance schedules where possible, aiming to avoid several facilities being taken offline at the same time. The IEA will monitor implementation and provide a follow-up assessment within 20 days.
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The reserve release could provide short-term relief by adding supply to a market facing shortages, particularly in diesel. Oil prices initially fell after the announcement, although Brent crude later moved back above $100 a barrel, highlighting the uncertainty around the longer-term impact.
Analysts have cautioned that releasing emergency stocks does not address the underlying supply disruptions. Former IEA oil markets official Neil Atkinson told Al Jazeera that global crude and refined-product supplies remain below pre-war levels. This means prices could remain sensitive to developments in the Middle East, Russian energy infrastructure and global demand even after the G7 release begins.