G7 leaders agree to release 100 million barrels of oil as diesel prices soar

CALGARY — G7 leaders have agreed to release 100 million barrels of oil and diesel over four months, with substantial amounts of diesel to be released within the first 20 days as soaring fuel prices continue to put pressure on businesses and households.According to a joint leaders’ statement released Friday by the Prime Minister’s Office (PMO), the coordinated release will begin “immediately.”The announcement comes as US President Donald Trump has recently been putting pressure on European Union (EU) countries to tap their stockpiles of diesel.Trump took to Truth Social on Friday, saying, “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately.”.In the US, diesel prices have recently reached record levels, while in Canada, the average diesel price stood at $2.63 per litre Thursday, with drivers in Vancouver paying roughly $2.71.According to the Associated Press, Trump spoke with French President Emmanuel Macron — chair of the G7 — on Thursday night about rising fuel costs and the availability of petroleum products before Macron chaired a virtual meeting of G7 leaders on Friday.The leaders said surging oil prices were threatening economic stability and pledged coordinated action to improve supplies and ease pressure on consumers.“We will coordinate maintenance schedules across G7 refineries to prevent simultaneous capacity shutdowns and temporarily increase utilisation rates where feasible,” the joint leaders’ statement reads.“We also encourage engagement with countries holding significant refining capacities to boost global production of refined products, particularly diesel, in light of ongoing market pressures in this segment.”The International Energy Agency (IEA) will monitor implementation of the measures and earlier commitments made in March..G7 members and partners will meet through the agency in the coming days to consider additional diesel releases if needed.The agreement also included a commitment to avoid restrictions on energy exports between G7 countries.The leaders also condemned Iran’s “continued attacks against its regional neighbours and its disruption of international trade, energy security and the global economy” and called for the “full restoration” of the Strait of Hormuz.During the eight-month war with Iran, fuel prices have climbed, adding political pressure on Trump ahead of November’s midterm elections.Despite this, Trump has repeatedly argued the economic cost is justified by the effort to prevent Iran from obtaining nuclear weapons.The G7 leaders also pledged to maintain sanctions against Russia while working with international partners to limit further disruption to fuel, gas and other commodity markets.The IEA is expected to deliver a follow-up report within 20 days assessing the measures and recommending further action, including replenishment of emergency stocks..Ursula von der Leyen, president of the European Commission, welcomed the decision, saying, “our citizens need and deserve affordable energy,” while also thanking Macron for convening “this important call.”

G7 leaders agree to release 100 million barrels of oil as diesel prices soar

Related Stories

GIESBRECHT: Trump’s October surprise

ALEXANDER: Value before the border

Toronto regular gas falls overnight as diesel stays near a record

MCTEAGUE: Suspending the gas tax won’t fix Canada’s fuel price crisis