G7 releases 100 million barrels of oil and diesel over four months

The Group of Seven announced on October 2, 2026, a coordinated release of up to 100 million barrels of diesel and crude oil over four months, beginning immediately. The commitment was made during a virtual meeting of G7 leaders and will be coordinated through the International Energy Agency (IEA). The announcement follows months of global diesel shortages driven by refinery outages in the Middle East and Russia, export restrictions, and reduced Chinese refinery output.

Under the coordinated plan, G7 members and partner countries will frontload a substantial diesel release within the first 20 days, with additional diesel releases to be discussed as needed. The group also agreed to coordinate refinery maintenance schedules to prevent simultaneous capacity shutdowns and to increase utilization rates where feasible. Additionally, G7 leaders committed to refraining from export restrictions on energy products between member states and called on all producers to avoid bans that could worsen market tensions.

The announcement came after US President Donald Trump had threatened to ban US diesel exports if European countries did not increase their own reserve releases. Trump initially backed the export ban early in the previous week and was still considering it as of Thursday, but subsequently stated the ban was "never really on the table." French President Emmanuel Macron noted that Trump had been "very clear" on the commitment against export restrictions. Trump welcomed the G7 decision on Truth Social, stating: "Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately."

Global diesel prices had reached crisis levels, with US prices recently hitting a record $6.50 per gallon and European futures trading above $200 per barrel. The announcement produced an immediate market reaction: European gasoil futures fell more than 4 percent on Friday, while Brent crude dropped approximately $3 to below $100 per barrel. Diesel's premium over crude fell to roughly $69 per barrel from $76.77 the previous day. However, prices recovered slightly by Friday evening as market focus shifted to renewed Saudi-Houthi strikes affecting shipping routes.

The 100 million barrels represent a continuation of commitments made in March 2026, when the IEA coordinated a 400 million-barrel emergency release following energy supply disruptions. According to analysts, the current release addresses an acute shortage by putting physical product into the market but does not add refinery capacity, meaning the underlying supply challenge remains dependent on damaged refineries returning to service. UK Foreign Secretary Ed Miliband described the measures as intended to "stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks."