G7 Agrees to Release 100 Million Barrels of Diesel and Oil as Trump Drops Export Ban Threat

Group of Seven countries agreed on Friday to free 100 million barrels of diesel and crude oil from emergency reserves, after weeks of pressure from President Donald Trump. The release will run through the International Energy Agency, start immediately and last four months, with a substantial share of diesel due within 20 days. The statement did not say how much will be crude or diesel, or which countries will take part. It also left unclear how much overlaps with March’s record 400-million-barrel release, of which about two-thirds has been delivered. Members will meet at the IEA in coming days to discuss further diesel releases.

Diesel Export Ban Off the Table

The US had warned Europe that failing to draw down diesel stocks could trigger a US export ban, which would hit a continent now heavily reliant on American diesel. The G7 pledged to avoid energy export restrictions among themselves. Trump said the ban was never really planned, though he had backed it in recent weeks. Analysts at Energy Aspects called the deal a political statement rather than a binding commitment.

Fuel Prices, Trump’s Ratings and Market Reaction

Trump faces a career-low 32% approval rating, and only 17% back his handling of living costs. The White House is preparing an executive order on record diesel prices, including wider use of tax-exempt red dyed diesel. US diesel futures fell 3.25% to $4.49 a gallon, and European futures dropped 5.75%.