With diesel prices still hovering near the record highs reached last week, the world's seven leading industrial economies - the United States, Britain, Canada, France, Germany, Italy and Japan - announced Friday that they will release 100 million barrels of diesel and crude oil from their emergency reserves over a four-month span.
"Facing unprecedented volatility in oil markets - with surging prices threatening economic stability and the well-being of our citizens - we have agreed on decisive, coordinated measures to stabilize immediate energy supplies, shield households and businesses from price shocks, and strengthen the long-term resilience of global energy systems," the group said in a statement.
The new plan, to be coordinated by the International Energy Agency, comes after a pressure campaign by the Trump administration, which threatened to ban U.S. diesel exports. The pressure angered European allies, since such a ban would slash diesel supplies to Europe and deliver a painful economic blow. Some economists warned it would ultimately raise diesel prices in the United States as well. As part of its statement Friday, the G7 said that member countries agreed to refrain from export restrictions among the group.
The 100 million barrels to be released are the equivalent of one day's worth of global oil demand, The New York Times notes. The White House is reportedly also preparing an executive order to be unveiled as soon as next week aimed at bringing down diesel prices.