G7 Agrees to Release 100 Million Barrels; Trump Drops Diesel Export Ban

The Group of Seven agreed Friday to a coordinated release of 100 million barrels of oil and diesel over four months, and President Trump said a U.S. diesel export ban is off.

The joint statement, released by the office of French President Emmanuel Macron, said the release will run through the International Energy Agency and “begin immediately.” It includes “a frontloaded substantial diesel release within the first 20 days by G7 members and partners.” The rest is to come over four months.

The statement also said members will “refrain from export restrictions on energy and energy products between G7 countries” and called on all producers to avoid bans that could tighten the market. Macron, who chaired the leaders’ video call, said Trump “in particular, was very clear on this point.” He said the action would “bring down the prices of petroleum products, particularly diesel.”

Trump posted on Truth Social that Europe had agreed to release “a massive amount of their heavily stocked Diesel Oil” and that “the process will begin immediately.” At the White House he told reporters, “We’re not going to be doing the export ban.” Asked about the threat, he said, “we were never going to do it.” A White House official told CNN that Trump spoke with Macron Thursday night and with G7 leaders Friday morning.

The agreement follows a warning reported Thursday. Three people close to the talks told Reuters the administration had told France and Germany to draw emergency diesel stocks or face a possible U.S. export ban. A European source said Washington had asked the EU for 120 million barrels of diesel over six months. The Financial Times, citing two diplomats, said the White House had asked Europe to unlock at least 100 million barrels.

France had floated a split in which Europe would release 50 million barrels of diesel and IEA members another 50 million barrels of crude, diplomats told the FT and OilPrice.com. The G7 text that emerged covers oil and diesel together and notes “commitments that have already been fulfilled,” a reference to the March IEA release. OilPrice.com reported that the 100 million barrels is meant to complete those earlier pledges, not necessarily add a fresh 100 million on top of them.

Macron told reporters the tone “was not one of threats; it was constructive.” The UK was represented by Ed Miliband, who said the measures would “stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks.”

Wholesale diesel in New York harbor fell almost 5 percent to $4.43 a gallon after the announcement, the Financial Times reported. U.S. retail diesel hit a record $6.529 a gallon in the Energy Information Administration survey for the week of Sept. 21 and was still $6.382 the following week, about 70 percent above a year earlier.

Europe is a net diesel importer and has leaned on American barrels since it banned Russian oil and the Iran war curtailed Middle East shipments. U.S. diesel exports reached a record 1.6 million barrels a day in August, according to Kpler. Analysts have warned that a U.S. export ban could cut domestic prices briefly and then force refiners to reduce runs, tightening gasoline as well as diesel.

Energy Aspects called the G7 text “a political statement rather than a specific and binding commitment,” with the headline number aimed at heading off a ban. The underlying shortage still depends on refineries damaged or idled by the war returning to service. The barrels, if delivered on the stated schedule, are the concession that followed Thursday’s warning.