Oil Prices Fall After G7 Agrees to Release 100 Million Barrels From Strategic Reserves

Global oil prices fell sharply on Friday after G7 countries agreed to coordinate the release of 100 million barrels of oil and refined petroleum products from strategic reserves through the International Energy Agency (IEA).

The release will begin immediately and continue over four months, with the G7 saying a substantial portion of diesel supplies will be released during the first 20 days. The move is intended to ease severe pressure in global energy markets and improve fuel availability.

The announcement came as oil and refined-fuel markets faced heightened volatility following disruptions to energy supplies linked to the conflict in the Middle East.

Brent Crude Falls Below $100

Oil prices reacted quickly to the announcement.

International benchmark Brent crude briefly fell below $100 per barrel before recovering to around $102, while US crude prices also declined.

IEA Executive Director Fatih Birol said oil prices had already begun falling following the G7 decision, noting that the coordinated reserve release was intended to help address the supply gap and reassure markets.

The scale and timing of the releases will determine how much additional supply reaches the physical market over the coming weeks.

Diesel Supply Remains a Major Concern

While crude oil flows from the Middle East have improved towards levels seen before the latest disruption, refined petroleum products remain under greater pressure.

The IEA said crude exports had recovered significantly, but refined-product flows remained severely constrained, particularly in diesel markets. Damage to refineries and disruptions to supply routes have reduced the availability of refined fuels.

The G7 has therefore placed particular emphasis on diesel, with members and partners expected to front-load a substantial release during the first 20 days.

The group also agreed to coordinate refinery maintenance schedules where possible and encourage higher refinery utilisation to support refined-product supplies.

Trump Administration Had Pressed for Reserve Releases

The agreement followed pressure from US President Donald Trump for European countries to tap their strategic diesel reserves as fuel prices rose.

The US administration had also raised the possibility of restricting US diesel exports, increasing concerns about further tightening an already strained international fuel market.

Following discussions with G7 leaders, the group reaffirmed its commitment to avoiding energy export restrictions among member states and called on other producers to avoid measures that could worsen market tensions.

IEA Had Already Released Hundreds of Millions of Barrels

The latest announcement comes on top of an earlier IEA collective action.

According to the agency, about 325 million barrels had already been released under the 400 million-barrel commitment announced in March 2026, representing more than 80 percent of that pledge.

The latest G7 decision is intended to provide additional support as governments seek to contain the economic impact of elevated energy prices.

However, the effect on fuel prices will depend on the speed of the releases, refinery capacity and the ability to convert available crude supplies into products such as diesel.

Markets Await Further Developments

The reserve release provides an immediate response to tight energy markets, but uncertainty remains over the longer-term outlook.

The G7 has asked the IEA to monitor the implementation and impact of the measures, with a follow-up report expected within 20 days. The group also said it would consider additional diesel releases if necessary.

For consumers and businesses facing higher fuel costs, the key question will be whether the additional supplies can translate into sustained reductions in crude and refined-fuel prices in the months ahead.