G7 To Release 100 Million Barrels Of Oil As US Diesel Price Hits $6.37

The Group of Seven nations have agreed to release 100 million barrels of oil over four months, including a substantial amount of diesel within the first 20 days, as fuel prices in the United States remain near record levels.

The agreement comes as President Donald Trump and his Republican Party face pressure to address rising prices ahead of November’s midterm elections. According to AP, Trump said the diesel release would begin “immediately” after he spoke with French President Emmanuel Macron, who currently holds the rotating G7 presidency.

The International Energy Agency (IEA) will coordinate the release involving G7 members and partners. The decision follows discussions over rising fuel prices and the availability of petroleum products amid the eight-month-long war with Iran.

G7 agrees to coordinated oil release

Trump spoke with Macron overnight about rising fuel prices and the availability of petroleum products, according to the French Embassy in the US. Macron subsequently chaired a video conference of G7 leaders to discuss the issue.

France announced the agreement in a statement released after the talks.

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

Trump announced the move on social media on Friday, October 2, saying, "Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately.”

According to AP, the agreement comes as fuel prices in the US and abroad have risen during the eight-month-long war with Iran. Trump has repeatedly said the economic cost of the conflict is worth it to ensure that Iran does not obtain nuclear weapons.

Trump has insisted that prices will come down after the war, although there is currently no end in sight.

US diesel prices hit record high

The national average price of a gallon of diesel in the US was $6.37 on Friday, according to AAA. It reached a record $6.52 on September 22.

Rising fuel costs have added to pressure on Trump and his Republican Party ahead of the November midterm elections. The president’s approval ratings have also lagged as the Iran war and his trade battles have contributed to higher prices for oil and other goods.

Poll shows pressure on Trump over prices

A new AP-NORC poll found that a majority of US adults blame Trump for higher prices, while his approval rating on handling the economy has fallen to a new low.

AP reported that Trump has become increasingly frustrated by what he sees as a disconnect between his administration’s achievements and the public’s view of his work.

Trump gave himself an A-plus for his work on the economy this week but said “we're doing an extremely poor job of promotion.”

The agreement comes as Trump faces continued political pressure over fuel prices and the wider economic impact of the Iran war and his trade battles.