Dubai – Business News Report|| The Group of Seven nations reached an agreement on Friday evening to withdraw 100 million barrels of diesel and crude oil from their emergency stockpiles. This coordinated action was warmly received by US President Donald Trump as he seeks to cool down the sharp rise in fuel prices linked to the ongoing conflict with Iran. The conflict had previously triggered the largest-ever drawdown from emergency reserves, coordinated by the International Energy Agency in March.
Coordinated Drawdown Process
In a joint statement, the G7 declared that considering commitments already fulfilled, they would execute their obligations through a coordinated withdrawal via the IEA totaling 100 million barrels. The process is set to begin immediately and will continue over a period of four months. A significant early withdrawal of diesel will take place within the first twenty days by G7 countries and their partners.
Trump’s Social Media Reaction
President Trump posted on Truth Social following the decision, stating that Europe had just agreed to withdraw a massive quantity from its large diesel reserves. He emphasized that the process would start immediately. The US President aims to lower domestic fuel prices ahead of the midterm elections scheduled for November third. He told reporters at the White House before departing for Alabama that the United States would not impose an export ban on diesel.
Clarification on Export Policies
Trump noted that this plan was not seriously proposed initially, despite mentioning repeatedly over the past two weeks that an export ban was under study and that he supported the idea. He added that Europe has a large diesel reserve and will make a major global contribution, as will the US. They will not impose an export ban but will do what is necessary. The G7 statement also confirmed that member states will refrain from imposing restrictions on energy product exports among themselves.
Previous Historical Context
The war with Iran led to the largest emergency reserve drawdown in March, where countries withdrew 400 million barrels coordinated by the IEA. Reuters reported earlier that the Trump administration informed Germany and France they must draw from diesel emergency reserves or face a potential US export ban. Sources indicated European governments discussed a French proposal for Europe to withdraw 50 million barrels of diesel while IEA members withdraw 50 million barrels of crude oil.
This story was produced in the newsroom from the disclosed sources named above.
