G7 Agrees to Release Oil and Diesel Stocks
G7 nations agreed to release 100 million barrels of oil including diesel. The release should begin immediately and last four months.
A large amount of diesel is due within the first 20 days. The International Energy Agency is coordinating the release.
G7 members also pledged not to restrict energy trade among themselves. Diesel prices have risen worldwide because of an oil supply shortage.
Fighting between the United States and Iran added to the shortage. Wars in Europe and the Middle East also limit fuel supplies.
Bloomberg reported the Trump administration pushed for action on rising fuel prices. European leaders agreed Friday to release some diesel stockpiles.
MarketWatch linked an oil price fall of over 4% to that deal. Reuters said an earlier drop came before the final G7 announcement.
West Texas Intermediate crude fell 4.25% and Brent crude fell 3%. European gasoil fell 4.3%.
EU countries planned crisis talks over rising diesel prices. Reports say France proposed 50 million barrels each of diesel and crude.
Key Terms 5
- G7 A group of seven rich nations that work together on economic issues.
- International Energy Agency A group that helps countries manage energy supplies and emergencies.
- Brent crude A major world oil price benchmark.
- West Texas Intermediate A main US oil price benchmark.
- gasoil A fuel closely linked to diesel.