The G7 said the coordinated release will begin immediately and continue for four months, with a “substantial” amount of diesel released within the first 20 days.
- Trump had repeatedly floated a potential U.S. diesel export ban in recent weeks as fuel prices climbed, but said on Friday that the measure is now off the table.
- According to a Reuters report, Trump told reporters Europe has substantial diesel supplies and that both Europe and the U.S. would make a “major world contribution” to stabilizing the market.
- The G7 statement also included a commitment by member countries to refrain from imposing export restrictions on energy and energy products between G7 nations.
President Donald Trump said the U.S. will not impose a diesel export ban after the Group of Seven (G7) countries agreed to coordinate the release of 100 million barrels of crude oil and petroleum products from emergency reserves.
The G7 said the coordinated release will begin immediately and continue for four months, with a “substantial” amount of diesel released within the first 20 days. Trump had repeatedly floated a potential U.S. diesel export ban in recent weeks as fuel prices climbed, but said on Friday that the measure is now off the table.
Trump Drops Diesel Export Ban As Europe Faces Supply Pressure
Trump had warned that the U.S. could restrict diesel exports if European countries failed to release more of their emergency inventories. Europe has become increasingly dependent on U.S. diesel imports after disruptions to supplies from Gulf producers following the outbreak of the Iran war.
According to a Reuters report, Trump told reporters that the U.S. would not impose the export ban, saying Europe has substantial diesel supplies and that both Europe and the U.S. would make a “major world contribution” to stabilizing the market.
“Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately,” Trump said in a post on Truth Social.
The G7 statement also included a commitment by member countries to refrain from imposing export restrictions on energy and energy products between G7 nations, while calling on other producers to avoid measures that could further tighten markets.
G7 Unveils 100 Million-Barrel Emergency Stock Release
The G7 said its members and partners will coordinate through the International Energy Agency to release 100 million barrels of oil and refined petroleum products, taking into account commitments already fulfilled under an earlier emergency stock-release agreement.
The release will be front-loaded, with a substantial amount of diesel entering the market during the first 20 days. The agreement will run for four months, while G7 countries said they would coordinate refinery maintenance schedules and encourage additional refining capacity where feasible.
The group did not specify exactly how the 100 million barrels will be divided between crude oil, diesel and other petroleum products, nor did it provide a country-by-country breakdown.
The G7 also said it would convene with the IEA in the coming days to discuss additional diesel releases if market conditions require further action.
European governments had also discussed a proposal from France for countries to release 50 million barrels of diesel, while IEA members would release another 50 million barrels of crude oil, according to people familiar with the discussions.
The emergency releases come after the IEA coordinated a record 400-million-barrel stock release in March.
Crude Oil Prices Mixed
Crude oil prices were mixed last week, with the U.S. West Texas Intermediate (WTI) futures expiring in November falling 1.24% to $91.26 a barrel after a 3.82% fall the week before. However, Brent crude futures expiring in December rose 3.47% this week, hovering around $102.72 a barrel after a 0.46% increase the week before.
The United States Oil Fund ETF (USO) declined about 2% on Friday, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) fell about 0.4%.
During the after-hours session on Friday, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, rose 0.03%; the Invesco QQQ Trust ETF (QQQ) was flat; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.12%. Retail sentiment on Stocktwits toward the S&P 500 ETF was in the ‘extremely bullish’ territory at the time of writing.
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