G7 diesel release explained: why prices hit record highs
The G7 will release up to 100 million barrels of oil and diesel from emergency reserves. Here is why the unusual step was taken.Diesel prices have hit record highs. US diesel averaged near 6.50 dollars a gallon, after a record 6.52 dollars in late September.
Europe has seen all-time highs above 2.24 euros a litre.The crunch has several causes. Ukrainian strikes have damaged Russian refineries, China has curbed diesel exports, and conflict around Iran has strained Middle East supply. Harvest season has added farm-fuel demand.The release will run over four months, managed by the International Energy Agency.
A large diesel tranche is front-loaded in the first 20 days to bring quick relief.President Trump dropped a threatened US diesel export ban after the deal. Analysts say it will ease prices short term, but lasting calm needs geopolitical tensions to ease. The International Energy Agency will manage the release.
Front-loading diesel in the first 20 days is meant to bring quick relief.
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