The Group of Seven (G7) has agreed to release 100 million barrels of diesel and other oil reserves through the International Energy Agency (IEA) in a move aimed at stabilising increasingly volatile global energy markets.
The emergency release will begin immediately and run over four months, with a substantial amount of diesel expected to enter the market within the first 20 days. The decision was announced in a joint statement following a virtual meeting of G7 leaders. (Reuters)
The G7 comprises Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
The leaders said the measures were necessary to address immediate energy-supply pressures, protect households and businesses from price shocks and strengthen the resilience of global energy systems.
They also asked the IEA to assess the impact of the release and report on further measures, including the possibility of additional diesel supplies if market conditions require it.
The group further agreed to coordinate maintenance schedules at G7 refineries to avoid simultaneous shutdowns and encouraged countries with significant refining capacity to increase production of refined petroleum products, particularly diesel.
The move comes amid heightened pressure on global fuel supplies and surging energy prices linked to disruptions in international oil and fuel markets. (Reuters)
The G7 also reaffirmed its opposition to energy export restrictions among member states, while calling on major producers to avoid measures that could further intensify market tensions.
The bloc said it would continue monitoring energy markets and the implementation of the emergency measures, with a follow-up report expected within 20 days.
The 100 million-barrel release is equivalent to roughly one day’s worth of global oil demand, according to reporting on the announcement. (The Business Times)
