G7 agrees to release 100 million barrels of fuel reserves as US drops export ban threat

Coordinated reserve release

Leaders of the Group of Seven agreed on 2 October to release 100 million barrels of oil and diesel from strategic stockpiles over a four-month period. Coordinated through the International Energy Agency, the measure includes a frontloaded release of diesel within the first 20 days by G7 member states, which comprise Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The agreement followed diplomatic discussions initiated by French President Emmanuel Macron, who held a telephone conference with United States President Donald Trump on the evening of 1 October. The French government proposed that European nations supply 50 million barrels of diesel while wider IEA members contribute 50 million barrels of crude oil. Brussels convened an energy task force and an emergency meeting of European Union ambassadors on the morning of 2 October before G7 leaders finalized the joint plan during a virtual summit.

We will implement our commitments with a coordinated release through the IEA of 100 million barrels to begin immediately over 4 months, including a frontloaded substantial diesel release within the first 20 days by G7 members and partners.

Export ban averted

Following the G7 decision, President Trump announced that the United States would not impose a ban on diesel exports. Trump had applied pressure on European governments, specifically targeting Berlin and Paris, to release domestic reserves to curb rising fuel costs tied to conflict in the Middle East and tensions around the Strait of Hormuz. In remarks delivered in Washington, Trump stated that an export prohibition was off the table despite pressure from some domestic lawmakers seeking to restrict foreign fuel shipments. Price Futures Group senior analyst Phil Flynn noted that European nations were particularly vulnerable to potential export restrictions, as regional refiners remain constrained. Trump posted on Truth Social that European allies had agreed to a substantial drawdown of their stockpiles with immediate effect.

European price pressures

Data from European Union institutions indicates that European diesel prices have more than doubled since February, while natural gas prices increased by 140%. European dependence on American fuel shipments expanded during that period, with the US share of European diesel imports rising from 21% in 2025 to 45% between April and May, and passing 50% in August. Italian Prime Minister Giorgia Meloni endorsed the reserve drawdown and urged a structured dialogue between G7 partners and energy producers in the Persian Gulf. European Council President António Costa stated that European Union heads of state will address energy price relief for households and industries during their upcoming summit on 15 and 16 October, emphasizing the need to reduce fossil fuel reliance.

Market reaction and IEA assessment

Crude oil futures fell during United States trading on 2 October after the joint release was confirmed. Brent crude settled lower by $0.06, or 0.06%, at $102.25 per barrel, while West Texas Intermediate crude dropped $1.76, or 1.90%, to finish at $91.11 per barrel. International Energy Agency Executive Director Fatih Birol addressed the market movement during an energy finance conference in Istanbul, Turkey, hosted by Banks Association of Turkey Chairman Alpaslan Cakar. Birol confirmed that the joint drawdown had started to ease pricing pressures across international energy benchmarks.

We took a step today on diesel. We held a meeting with world leaders and announced that we would start releasing 100 million barrels of oil again. Prices are starting to fall.