G7 Agrees To 100 Mn Bbl Oil Release, Frontloads Diesel


   
Daniel Rodriguez Huerta
DTN Refined Fuels Market Reporter

   CALGARY, CANADA (DTN) -- G7 leaders agreed to a coordinated release of 100 
million bbl through the International Energy Agency (IEA) as surging oil prices 
threaten economic stability, according to a statement released by the leaders 
Friday (10/2). The release starts immediately and runs over four months, with a 
substantial diesel release frontloaded within the first 20 days.

   The release will carry out the G7's March 2026 commitments, taking into 
account those already fulfilled. The leaders said they will convene in the 
coming days to discuss possible additional diesel releases.

   The statement followed a proposal by French President Emmanuel Macron for a 
joint EU-wide release of crude and diesel from strategic reserves.

   ULSD futures fell Friday, with the NYMEX prompt contract at $4.4721 gallon 
near 11:45 a.m. ET, down 17cts on the day.

   Reuters reported the French plan included 50 million bbl of diesel from EU 
reserves and 50 million bbl of crude from IEA members, on top of the 400 
million bbl agreed in March.

   The proposal came a day after the Trump administration threatened to cut 
U.S. diesel flows to Europe unless countries tapped emergency stocks. The U.S. 
has become one of Europe's largest diesel suppliers since the loss of Middle 
East product streams.

   Eurostat data show EU imports of gasoil and road diesel from Saudi Arabia 
rose 77% year over year in June to 430,000 bpd, while U.S. volumes rose 46% to 
313,000 bpd. The data showed combined imports from Qatar, Iraq, Bahrain, UAE, 
and Kuwait's fell 92% to 21,000 bpd from 275,000 bpd a year ago. Total EU 
imports fell 25% to 1.17 million bpd.

   The IEA estimated this week that its 32 members have released about two 
thirds of the 400 million bbl of crude pledged in March.

   The leaders said they will coordinate maintenance schedules across G7 
refineries to avoid simultaneous shutdowns and encourage engagement with 
countries holding significant refining capacity to boost refined product 
output, particularly diesel. They reaffirmed a pledge to refrain from energy 
export restrictions between G7 countries.

   The IEA should deliver a follow-up report within the next 20 days with 
actionable recommendations, including stocks replenishment.

   The leaders condemned Iran's attacks on its neighbors and disruption of 
trade, and called for restored navigational rights in the Strait of Hormuz.

   "Our citizens' concerns about energy prices remain a top priority," the 
leaders said, adding they "stand ready to adjust measures as needed."




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