U.S. and Allies Agree to Release Diesel Reserves as Prices Soar
New York Times · LC · trust 60/100
The Group of 7, which includes Britain, France and Japan, announced the release of 100 million barrels over four months, effective immediately.
Listen · 5:52 min Share full article 317 The release of diesel and crude oil is designed to “stabilize immediate energy supplies,” the Group of 7 countries said in an announcement. Credit... Hilary Swift for The New York Times By Lisa Friedman and Rebecca F. Elliott
Lisa Friedman reported from London and Rebecca Elliott from New York.
Under the plan, the Group of 7 countries — the United States, France, Italy, Germany, Japan, Britain and Canada — will release 100 million barrels of diesel and crude oil from strategic stockpiles over the coming four months. That is equivalent to around one day’s worth of global oil demand. The effort will be coordinated by the International Energy Agency, a Paris-based multilateral organization.
Calling the plan “decisive, coordinated measures to stabilize immediate energy supplies” and curb price spikes, the Group of 7 said that they would also make a “substantial” release of diesel within 20 days.
The group did not specify how much of the fuel to be released would be diesel and how much would be unrefined crude oil. Diesel and related fuels make up roughly 28 percent of the world’s oil demand, according to the I.E.A. They have been in especially short supply because military strikes on energy infrastructure in the Middle East and Russia have severely damaged refineries, reducing the world’s capacity to turn oil into the fuels that consumers use.
The deal is the second time nations have come together for a major release of fuel since the United States and Israel launched military strikes against Iran on Feb. 28, triggering a global energy crisis. In March, the I.E.A. announced that world leaders would tap 400 million barrels of oil, the largest coordinated release of stockpiled oil on record by members of the energy agency.
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