Leaders of the Group of Seven nations have committed to releasing emergency petroleum supplies in a coordinated effort to address elevated global diesel prices. French President Emmanuel Macron, serving as the current G7 chair, convened crisis talks among the world’s largest economies following pressure from the White House. The agreement calls for the release of 50 million barrels of diesel and 50 million barrels of crude oil into global markets, with a substantial portion to be made available within the first 20 days.
The emergency measure emerged after US President Donald Trump threatened an export ban on American diesel shipments unless European nations released their own strategic reserves. The threat created pressure on Europe, which produces approximately 70 percent of its diesel domestically but depends on imports to meet total demand. US diesel exports had reached record levels in recent months, with shipments climbing to 1.9 million barrels weekly in early August, depleting domestic stockpiles to their lowest seasonal levels since 1996 and driving pump prices above $5.85 per gallon.
Global refining capacity has been constrained by multiple factors, including disruptions to exports from the Middle East, reduced output from Chinese refineries, and attacks on Russian fuel production that have lowered output to 20-year lows. The supply pressures have resulted in record fuel costs across consuming nations, with UK diesel prices reaching £2 per litre on pumps. Industry analysts cautioned that a unilateral export ban would not resolve underlying supply challenges in either the US or global markets.
The G7 agreement also included commitments against implementing export restrictions on petroleum products. Macron indicated that ministers would discuss the possibility of releasing additional diesel supplies if market conditions warrant further intervention. Brent crude oil trading fluctuated following the announcement, initially falling to approximately $98 per barrel before rising above $102 by day’s end.
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