Von der Leyen welcomes G7 releasing diesel and oil stocks

European Commission President Ursula von der Leyen has welcomed a decision by the leaders of the G7 group of nations to release 100 million barrels of diesel and crude oil from strategic reserves in the coming months in order to help lower prices. The group said it will undertake a co-ordinated release of 100 million barrels of diesel and other reserves through the International Energy Agency (IEA) to try and stabilise world energy markets. "We welcome the decision of G7 countries not to impose any export bans on allies and the continued solidarity between partners. We support an IEA-coordinated release of fuel stocks," Ms von der Leyen wrote on X. US oil prices dropped sharply - as much as 5% at one point - while international benchmark Brent crude briefly fell back below $100 per barrel. Earlier, US President Donald Trump, who had threatened to ban exports of US diesel if France and Germany did not release some of their diesel stocks, welcomed the measure. "Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately," Mr Trump posted on his Truth Social network. The G7 announcement followed feverish diplomatic activity in part triggered by Mr Trump's threat to ban US exports of diesel, and to help reduce prices in Europe which are feeding into a growing cost-of-living crisis. During the week, Mr Trump had threatened the ban if France and Germany did not release 120 million barrels of diesel from their stocks. That would have amounted to 40% of their overall reserves. Following a call yesterday involving France, the European Commission, Ireland, Italy, Germany and the UK, there was an emergency meeting of the EU’s Energy Union task force this morning. The Irish presidency of the European Union then called an emergency gathering of EU ambassadors for this afternoon, just around the time French president Emmanuel Macron had called a meeting of G7 leaders, including Mr Trump. In a statement following that meeting, the group said it would coordinate maintenance across G7 refineries in order to prevent simultaneous shutdowns, while also urging countries with refining capacity to boost production. "We will implement our commitments with a coordinated release through the IEA of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days by G7 members and partners," said the statement, released by the office of French President Emmanuel Macron. A further release could be possible depending on an upcoming meeting of the IEA, which is the main body coordinating global energy supplies. The global scramble to reduce the price of diesel and other oil products, currently soaring due largely to the US-Israeli war on Iran, has intensified. There are ongoing tensions between the Trump administration and the European Union, given the damage high diesel prices are likely to cause Mr Trump in the upcoming midterm elections. The European Commission condemned Mr Trump's threat saying it was in no-one's interest and that it would undermine trust in the United States as a reliable partner. The Commission has insisted there is no threat to strategic supplies of diesel in Europe and that any release of reserves would be a matter for the IEA, with the Commission coordinating Europe’s response in such a scenario. Irish officials have said that the state has 95 days of diesel reserves and that there is no cause for concern. However, the US threats to impose a ban on its diesel exports are certainly concentrating minds in Europe. Dramatic consequences for EU economic performance EU trade chief Maroš Šefčovič told reporters yesterday on the sidelines of the G20 trade ministers gathering in Milwaukee that any move by the US to ban diesel exports would be "unexpected for Europeans". "It would have very dramatic consequences for our economic performance," he said of any potential diesel export ban. Mr Šefčovič told reporters that he did not go into details with US Trade Representative Jamieson Greer on energy exports at the meeting, but the transatlantic partners "decided to stay in close touch to avoid any surprises here". 'Ongoing disruptions' Reports said the Trump administration wants France and Germany in particular to tap their stockpiles of diesel to try to curb prices sent soaring by the US war on Iran. "Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions," US Treasury Secretary Scott Bessent said in a post on social media. High energy costs loom as a threat to Mr Trump's Republican party in next month's midterm elections. "It is in Europe's best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers," a US official told AFP. At G20 trade talks in Milwaukee, Mr Greer struck a conciliatory tone, saying there was an "eagerness on both sides to work together" on the diesel issue. And Mr Trump told reporters in Texas yesterday that he "may" ask European countries to release diesel reserves. 'Balanced solutions' France's minister delegate for international trade, Nicolas Forissier, told AFP in Milwaukee: "I can't imagine that there will be a ban." He stressed the importance of diesel to the United States and European countries, adding both sides will "try to find solutions." "In France, we'll try to find balanced solutions all over the world," Mr Forissier added. "If not with the Americans, it will be with other countries." On Wednesday, Mr Trump said he was still considering a possible ban on US diesel exports, while adding that he thought it could ultimately cause gasoline prices to rise. "I'm thinking about it," Mr Trump told reporters in the Oval Office. Speaking alongside Mr Trump, US Energy Secretary Chris Wright said that the world would "hear announcements from our friends in Europe" to push diesel prices down. Asked about a release from strategic reserves, the French presidency said no such demand had been made when Emmanuel Macron and Mr Trump met on the sidelines of the UN General Assembly last week. Mr Macron would also soon convene a video meeting of G7 leaders "to make progress on the various levers that can be used to address the rising fuel prices... including coordination on releasing reserves." Mr Macron announced on 18 September a plan for such a meeting. The G7 gathering is expected in mid-October, according to the French president's press office. Average US diesel prices have surged more than 70% to $6.39 a gallon since the start of the Iran war, according to AAA motor club data. Fuel prices have caused living costs to soar, leaving Mr Trump's Republican Party fearing it could lose control of Congress in November's midterm elections. Additional reporting Reuters, AFP