G7 nations will release 100m barrels of oil and diesel after prices shoot up

G7 countries agreed on Friday to release 100 million barrels of diesel and crude oil from their reserves over four months, leaders said, agreeing to "refrain from export restrictions on energy" and urging others to do the same.

The announcement came after G7 leaders held talks to coordinate action on fuel prices, after the United States upped pressure on Europe to release its strategic reserves by threatening a diesel export ban.

The seven countries agreed to "a coordinated release through the IEA of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days," they said in a joint statement released by French President Emmanuel Macron's office.

The leaders also said that there would be no ban on diesel exports between them.

"We reaffirm our commitment to refrain from export restrictions on energy and energy products between G7 countries and call on all producers to refrain from imposing bans that could exacerbate market tensions," the leaders said.

"Our citizens' concerns about energy prices remain a top priority," they added. "We will monitor developments closely and stand ready to adjust measures as needed."

Earlier, President Donald Trump said the diesel release would happen “immediately,” while a G7 statement promised a “frontloaded substantial release” of diesel within the next 20 days.

Trump and his Republican Party face pressure to address surging prices ahead of the Nov.3 midterm elections, and Trump announced the action Friday on social media.

The president’s approval ratings on the economy hit a new low, according to an AP-NORC poll, as the Iran war and his trade battles have increased US prices for oil and other goods.

Macron had convened a video call of G7 leaders — a group comprising also Britain, Japan, Canada, Germany and Italy — to discuss joint action after he spoke with Donald Trump.

Trump has floated the possibility of banning US exports of diesel, which is used in trucks and other hauling vehicles, an alarming prospect for the EU, which relies heavily on fossil fuel imports.

Agence France-Presse