The Group of Seven wealthy democracies said Friday that they plan to release 100 million barrels of oil and fuel products in the coming weeks, starting with “substantial” amounts of diesel after the fuel recently hit record high prices in the United States.
The release follows on from a March announcement that International Energy Agency member countries would release 426 million barrels of oil and products to stabilize the oil market. European Union countries committed about 92 million barrels, a promise weighted toward refined products made from crude such as diesel.
3 midterm elections, and Trump announced the action Friday on social media. The national average for a gallon of diesel in the U.S. was $6.37 on Friday, according to AAA, after hitting a record $6.52 on Sept. 22. Trump on Thursday embarked on what he said would be a 32-day marathon of rallies to try to bolster his party’s chances for keeping control of the U.S.
France holds the rotating presidency of the G7 group and made the announcement in a statement released after videoconference talks that Macron presided over. In addition to the rise in the price of the crude oil from which diesel is made, other factors include the decision by Russia to ban exports due to Ukrainian drone strikes on its refineries. Meanwhile refined product shipments from the Persian Gulf producers have fallen due to war damage and blocked export routes.
Trump and his Republican Party face pressure to address surging prices ahead of the Nov. Diesel prices have hit records in Europe, too. The G7 countries are Canada, France, Germany, Italy, Japan, the U.K. and the U.S., plus EU representation. “The volumes we’re releasing should also add liquidity to the market and bring down prices. Europe does not import Russian diesel, but other buyers of Russian diesel such as Turkey and Latin American countries must now compete with Europe for available barrels. Some Republicans in the U.S. had called for Trump to ban U.S. exports of diesel to try to bring domestic prices down. Oil market analysts warn a U.S. export ban could lower prices in the short term but eventually backfire by reducing supplies of gasoline since diesel output can’t be lowered without also cutting overall refinery production. House and Senate in the November elections. The president has grown increasingly frustrated with what he sees as a disconnect between his achievements and the public’s view of his work.
The president’s approval ratings on the economy hit a new low, according to an AP-NORC poll, as the Iran war and his trade battles have increased U.S. prices for oil and other goods. Gas prices in the U.S. and abroad have soared during the eight-month-long war, a cost Trump has repeatedly said is worth it for making sure Iran does not obtain nuclear weapons. “This common decision and this unity should bring down prices,” Macron said. But the G7 statement said the group agreed not to limit energy exports to each other. Trump had a conversation overnight with Macron about the need to address rising fuel prices and the availability of petroleum products, according to the French Embassy in the U.S. This week he gave himself an A-plus for his work on the economy but said “we’re doing an extremely poor job of promotion.”
Macron on Friday then chaired the videoconference of G7 leaders to discuss the issue. Besides his call with Macron, Trump on Friday called in to the meeting with the G7 leaders to negotiate the release of the European diesel stockpiles, according to a White House official who was not authorized to speak publicly and spoke on the condition of anonymity.
President Donald Trump said the diesel release would happen “immediately,” echoing a G7 promise to start “immediately” with a “frontloaded substantial release” of diesel within the next 20 days and the rest over four months.
