G7 agrees to release 100 million barrels of oil and diesel to cool price spikes

G7 leaders agreed Friday to tap strategic stocks with a co-ordinated release of 100 million barrels of oil and diesel over four months, aiming to blunt energy-price shocks tied to Middle East conflict and tight refined-fuel markets.

In a joint statement posted by the Prime Minister’s Office on Oct. 2, the leaders of the United States, Canada, France, Italy, Germany, Britain and Japan said they will implement the release through the International Energy Agency, including a “frontloaded substantial diesel release within the first 20 days,” then reconvene at the IEA to discuss further diesel releases if needed. They also pledged to co-ordinate refinery maintenance, temporarily raise utilisation where feasible, refrain from energy-export restrictions among G7 members, and ask the IEA for a follow-up report within 20 days. The statement condemns Iran’s attacks on regional neighbours and disruption of trade, calls for full restoration of navigational rights in the Strait of Hormuz, and says sanctions on Russia will continue while partners watch for spillover into fuel and commodity markets.

The Financial Post reported that the pledge did not split how much of the 100 million barrels will be diesel versus crude, noting IEA work that puts diesel at roughly 30 per cent of global oil demand and that Middle East and Russian refinery strikes have tightened supplies. The paper said Canadian retail diesel had climbed to as high as $2.75 per litre — sparking trucker protests — while CAA data put average gasoline near $1.72 a litre. U.S. President Donald Trump’s earlier threat of a diesel export ban, analysts warn, would intensify competition for remaining barrels.

Sources: Prime Minister of Canada — G7 leaders’ statement; Financial Post.