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G7 (EU) agrees 100 million-barrel emergency oil release amid US pressure (www.euronews.com)
submitted 20 hours ago by [M] to c/europe@lemmy.ml
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G7 countries have agreed to release up to 100 million barrels of oil from strategic reserves over four months in a coordinated effort to bring down soaring energy prices, with a particular focus on diesel.

The release will be coordinated by the International Energy Agency (IEA), with a substantial amount of diesel to be made available within the first 20 days, according to a G7 statement.

French President Emmanuel Macron, who currently holds the G7 presidency, said the countries had agreed to act together to ease pressure on energy prices.

"We will implement our commitments with a coordinated release through the IEA of 100 million barrels to begin immediately over four months," the statement said.

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[–] 4 points 20 hours ago (2 children)

In 2025, distillate (or diesel) fuel consumption (excluding biodiesel and renewable diesel) by the U.S. transportation sector was about 2.94 million barrels per day.

The U.S. alone uses 3 million barrels per day, 100 million barrels would last about a month. These barrels are not being released to the U.S. directly. It's going to help a little, but not much, and not for long.

My understanding is no country stocks significant reserves compared to what is used each day, because oil sitting in storage costs money instead of making profits. Instead, we produce what is used and can be sold as soon as possible. Essentially, Just In Time for the energy sector, like every other manufacturer. So, this isn't a real solution, it's just Trump trying to earn brownie points before the election.

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  • [–] 4 points 18 hours ago

    The U.S. alone uses 3 million barrels per day, 100 million barrels would last about a month. These barrels are not being released to the U.S. directly. It’s going to help a little, but not much, and not for long.

    the goal is to cushion the election fallout in the midterms as much as possible.

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  • [–] 4 points 19 hours ago*

    The EU isn't sending anything to the US, they're releasing bits to their domestic marker. Donnie hopes this will temporarily reduce global demand so he can claim diesel priced are falling for the midterms.

    NASCAR Americans will believe it.

    Also, you can't really truly stockpile meaningful amounts of diesel or refined petroleum products. They denature over time. You can store meaningful amounts of crude but crude needs to be refined before use. That's why there are no huge gasoline or diesel stores, and why releasing crude doesn't immediately lower prices. Managing refining capacity and avoiding peaks and troughs in production rates also means supply shocks in either direction can be really bad. See 2021 when crude futures had a negative price for a bit. You could be paid to take possession (not store, own) millions of barrels of oil. Gotta manage the production rate.

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