Oil falls after G7 announces release of diesel reserves

Crude oil prices edged lower on Friday after G7 countries announced the release of diesel and crude oil reserves to help ease elevated fuel prices.

At the close, Brent crude futures, the global oil benchmark, fell about 6 cents to settle at $102.25 a barrel, while US West Texas Intermediate crude dropped $1.76 to close at $91.11 a barrel.

G7 leaders said in a joint statement that the group would release 100 million barrels from emergency oil reserves over the next four months, “with a substantial and accelerated release of diesel stocks during the first 20 days.”

The G7 comprises France, Canada, Germany, Italy, Japan, the United Kingdom and the United States.

Middle East tensions continue to support oil prices

While Western countries prepare to release additional reserves, tensions in the Middle East are escalating. Regional and Western officials told Reuters that Saudi Arabia is planning an offensive against Iran-backed Houthi fighters in Yemen.

Oil prices closed higher in the previous session following a report that the United States is sending a third aircraft carrier strike group to the Middle East.

President Donald Trump’s administration has urged Europe to release diesel reserves as the world faces a fuel supply shortage caused by wars in Eastern Europe and the Middle East.

“American farmers, truckers and businesses should not bear the burden of a global diesel shortage,” US Treasury Secretary Scott Bessent said on Thursday.

US President Donald Trump has raised the possibility of imposing a ban on diesel exports, although he appeared less committed to the idea earlier this week because of its potential impact on gasoline prices.

According to the International Energy Agency, the United States supplied about half of the European Union’s diesel imports in August, highlighting the 27-member bloc’s exposure to the potential consequences of any US export ban.