G7 to release 100 million barrels of oil and diesel to curb prices
The G7 and EU will release up to 100 million barrels of oil and diesel reserves over four months — diesel frontloaded in the first 20 days — to ease fuel prices driven up by the wars on Iran and in Ukraine.
The Group of Seven (G7) nations and the European Union have agreed to release up to 100 million barrels of oil and diesel from strategic reserves to curb soaring global fuel prices. The decision was announced around 2-3 October 2026 after a videoconference chaired by French President Emmanuel Macron, whose country holds the rotating G7 presidency.
What was decided
The release is coordinated through the International Energy Agency (IEA), begins immediately and runs over four months, with the first 20 days frontloaded with diesel. Leaders also pledged not to impose energy export restrictions. Prices had been driven up by the US and Israel's war on Iran and Russia's war on Ukraine.
The numbers
US diesel cost $6.37 a gallon on Friday (AAA), after hitting a record $6.52 on 22 September. After the announcement, Brent crude briefly fell below $100 before rebounding to about $102. US diesel inventories had dropped to 107.9 million barrels as of 11 September — a record low.
Will prices fall
Analysts expect only short-lived relief. Capital Economics analyst Hamad Hussain said: "It will put some downward pressure on prices, particularly global diesel prices. However, the impact would be short-lived given that this is just a temporary solution to the supply crunch." Former IEA official Neil Atkinson said the move "doesn't deal with the fundamental problem that the global supply remains lower than normal."
