U.S. President Donald Trump said on October 2 that the United States would not impose a ban on diesel fuel exports, welcoming the decision by European countries to release fuel from their reserves. UNN reports this with reference to the BBC.
Details
The G7 announced the release of 100 million barrels of oil and diesel fuel to ease supply problems that have caused prices to surge. This includes a "significant release" of diesel fuel over 20 days, as well as discussions on "additional releases of diesel fuel as necessary," according to a statement by G7 leaders.
The G7 will release 100 million barrels of oil amid rising prices02.10.26, 18:33
The group of advanced economies, including the United States, said the move would begin immediately and last for four months.
Under the measures taken after U.S. President Donald Trump threatened to ban diesel fuel exports, there will be no "export restrictions on energy carriers and energy products" among G7 members.
The G7 comprises the United States, the United Kingdom, Canada, Japan, Germany, Italy, and France; the EU is also represented at its meetings.
Donald Trump warned that he would ban diesel fuel exports from the United States if European countries did not agree to release more of their own reserves onto the market. This would ease price pressure on American consumers ahead of the midterm elections in November, but would lead to higher prices in other countries.
On Friday, October 2, Trump wrote on social media: "Europe has just agreed to release a huge amount of its diesel fuel, of which it has large reserves. The process will begin immediately."
His U.S. Treasury Secretary, Scott Bessent, argued that American farmers, truckers, and businesses "should not bear the burden" of rising prices.
Speaking later at the White House, Trump said that a ban on diesel fuel exports had "never been discussed."
Referring to the G7's decision to release fuel from its reserves, he added that "what Europe did was a great thing."
"Europe has a lot of diesel fuel, and they will make a significant contribution to the global economy—as will we," he said.
And we are not going to impose an export ban; we are going to do what we have to do
Trump initially said he supported a ban on diesel fuel exports at the beginning of last week, and was still considering the issue on Thursday, as his administration pressured Europe to use its reserves.
Diesel is widely used by the transportation industry and in agriculture, meaning that rising fuel costs increase the cost of producing essential goods such as food, the publication notes.
After the G7 leaders' meeting, French President Emmanuel Macron said the bloc had agreed to release reserves of "up to 100 million barrels" over four months under the coordination of the International Energy Agency (IEA).
Macron said the coordinated action would "lower prices for petroleum products, particularly diesel fuel." Referring to the agreement not to impose export bans, Macron said that "President Trump, in particular, expressed himself very clearly on this issue."
In a joint statement, G7 leaders said: "We will fulfill our commitments by coordinating through the IEA the release of 100 million barrels, beginning immediately over four months, including a significant release of diesel fuel during the first 20 days by G7 members and partners."
It remains unclear which partner countries will release their reserves, and how quickly.
What about oil prices
The 100 million barrels are expected to include both diesel fuel and crude oil. The price of the global Brent crude benchmark briefly fell below $100 per barrel, but had risen to approximately $102 by Friday evening. Before the U.S. and Israeli invasion of Iran, it was trading at around $73.
Matt Smith, director of commodity research at Kpler, said that oil prices had risen again due to renewed strikes between Saudi Arabia and the Houthis in Yemen.
"Oil prices fell sharply following the announcement of the release of strategic reserves in Europe, but reversed course amid rumors that Saudi Arabia is planning an offensive in Yemen in an attempt to restore a safe route through Bab el-Mandeb," he said.
The G7 leaders said they would also coordinate maintenance schedules to avoid several refineries being shut down at the same time, while encouraging countries with such capabilities to increase refining, particularly of diesel fuel.