G7, IEA to Release 100 Million Barrels of Diesel and Crude; Brent Falls Below $100

The G7 and partner nations agreed Friday to release up to 100 million barrels of emergency diesel and crude stocks over four months, coordinated through the International Energy Agency, to ease a global fuel shortage. European gasoil futures fell more than 4% on October 2, while Brent dropped about $3 to below $100 a barrel. Diesel's premium over crude narrowed to roughly $69 from $76.77 on Thursday. France said Europe would supply 50 million barrels of diesel, with IEA members providing another 50 million barrels of crude. President Donald Trump welcomed the move on Truth Social. U.S. diesel prices recently hit a record $6.50 a gallon, and European diesel futures have traded above $200 a barrel. Outages at Middle Eastern and Russian refineries and suspended Chinese fuel exports have removed millions of barrels of supply. The release adds physical fuel during an acute shortage but does not add refinery capacity. The G7 said the barrels help complete the 400-million-barrel emergency commitment made in March.