G7 to release '100 mn barrels' of diesel, crude

PARIS, Oct 2: G7 countries have agreed to release "100 million barrels" of diesel and crude oil from their reserves over the next four months, their leaders said Friday.

The nations agreed to "a coordinated release through the IEA of 100 million barrels to begin immediately over four months," they said in a statement released by French President Emmanuel Macron's office after talks to coordinate action on fuel prices.

The proposal, discussed on a call involving EU governments, calls for European countries to release 50 million barrels of diesel and International Energy Agency members to release 50 million barrels of crude oil, the sources said.

The discussions underscore growing pressure on Europe as US President Donald Trump considers a potential ban on US diesel exports to help lower domestic fuel prices ahead of November 3 midterm elections.

In weighing its response, the EU needs to balance the need to ease soaring fuel costs against preserving emergency reserves to safeguard against uncertain supply from Gulf producers due to disruptions caused by the Iran war.

France's finance and energy ministry did not immediately respond to a request for comment.

Reuters reported on Thursday that the Trump administration had told Germany and France to draw down emergency diesel inventories or face a potential US diesel export ban, according to three people close to the discussions.

The US had demanded large European countries including France and Germany release 100 million barrels of diesel within a 20-day window, one of the sources told Reuters on Friday.�" AGENCIES