The G7 countries have announced an agreement to release 100 million barrels of oil, with a focus on providing significant amounts of diesel, in response to record-high fuel prices in the United States. President Donald Trump confirmed the immediate release of diesel, aligning with the G7’s commitment to start promptly with a substantial release of diesel within the next 20 days, followed by the remainder over a four-month period.
Facing mounting pressure ahead of the Nov. 3 midterm elections, President Trump and the Republican Party are working to tackle the surge in prices. The president’s approval ratings have been declining, attributed to the impact of the Iran conflict and trade disputes on U.S. oil and commodity prices.
During the ongoing eight-month-long conflict, gas and diesel prices have witnessed a sharp increase. President Trump has justified the cost, citing national security concerns regarding Iran’s nuclear ambitions. He has assured that prices will stabilize post-war, despite the absence of a clear resolution in sight.
In Canada, the average diesel price stands at $2.63 per liter, with some cities like Vancouver experiencing even higher prices at around $2.71 per liter. These elevated costs are putting strain on transport truck drivers and farmers who heavily rely on diesel for their vehicles and equipment.
France, holding the rotating presidency of the G7, made the announcement following a videoconference led by French President Emmanuel Macron. The G7 member countries, along with EU representation, will work in collaboration with the International Energy Agency to implement the release of 100 million barrels of oil over four months, commencing immediately.
This decision follows a previous commitment made in March by International Energy Agency member nations to release 426 million barrels of oil and products to stabilize the oil market. Notably, President Trump suggested a potential ban on diesel exports to lower gas prices for American consumers, a move cautioned against by experts for its potential to strain the global fuel market further and escalate prices worldwide.
The G7’s statement also emphasized a commitment to refrain from imposing energy export restrictions among member countries and urged all producers to avoid actions that could worsen market tensions. President Trump’s discussions with Macron highlighted the urgent need to address rising fuel prices and ensure the availability of petroleum products, as reflected in a recent AP-NORC poll showing public dissatisfaction with Trump’s handling of the economy.