The G7 has agreed to jointly release 100 million barrels of crude oil and diesel from its emergency reserves over the next four months to curb uncontrolled increases in global fuel prices and ease inflationary pressure.
World leaders reached the agreement during an emergency virtual meeting convened on Friday at the initiative of French President Emmanuel Macron. The International Energy Agency (IEA) will oversee the coordinated action.
According to an AFP report, concerns in global markets grew after US President Donald Trump threatened to halt exports of US-produced diesel. Washington adopted the measure mainly to pressure import-dependent Europe to use its own strategic reserves, placing European countries under pressure.
The emergency G7 meeting was called after a telephone conversation between Trump and Macron.
A joint statement issued after the meeting said no export restrictions would be imposed on energy products among G7 member states in order to maintain normal energy flows.
“Ensuring affordable fuel prices for our people is the top priority,” the leaders said, adding that market conditions were being closely monitored and further measures would be taken if necessary.
In a post on Truth Social after the meeting, Trump wrote: “Europe has agreed to release oil and diesel from its vast reserves. This process will begin immediately.”
Macron said the leaders had agreed to work together to increase fuel production at refineries, bring 100 million barrels from emergency reserves to the market, and maintain free trade among member countries.
The other G7 members are the United Kingdom, Japan, Canada, Germany and Italy. The joint action is expected to bring down high global prices of diesel and crude oil to some extent.
