Leaders of the Group of Seven (G7) have announced plans to release up to 100 million barrels of oil from strategic reserves in response to surging global oil prices. The decision comes amid stalled negotiations and renewed geopolitical tensions that have heightened fears of prolonged disruptions to crude oil exports and shipping routes. The release will be coordinated through the International Energy Agency (IEA) over the next four months.
The G7, comprising Canada, the United States, France, Germany, Italy, Japan, and the United Kingdom, alongside the European Union as a non-enumerated participant, aims to ease soaring energy prices caused by disruptions to shipping traffic. The group will also convene to discuss the possibility of additional diesel releases as necessary. This move follows US President Donald Trump's recent pressure on European countries to release their diesel stockpiles.
The war involving the US, Israel, and Iran, which began on 28 February, has triggered a surge in global energy prices, with disruptions to shipping routes and concerns over crude oil supplies contributing to market volatility. Crude oil prices are trading between approximately $104 and $108 per barrel amid persistent supply concerns and geopolitical uncertainty.
The G7's announcement includes a "frontloaded substantial diesel release within the first 20 days by G7 members and partners". European Union countries and the United Kingdom held about 52 million tonnes of gas, oil, and diesel stocks as of June 2026, according to Eurostat. This includes nearly 38 million tonnes of emergency reserves held by EU member states.
The national average price of diesel in the United States stood at $6.37 per gallon on Friday, according to the American Automobile Association (AAA). The price reached a record high of $6.52 on 22 September. Rising fuel prices have become a politically sensitive issue for Mr. Trump and his Republican Party ahead of the US midterm elections in November.
Diesel is a critical fuel for several major sectors of the US economy, including transportation, construction, and agriculture, making sustained price increases a concern for businesses and consumers. US diesel inventories fell to a record low of 107.9 million barrels as of 11 September 2026, further highlighting concerns about domestic fuel supplies.
The prolonged disruption poses significant economic risks for Nigeria and other African economies, particularly as higher global crude and refined petroleum product prices feed into domestic energy costs, transportation expenses, and inflation. In Nigeria, rising international oil prices have coincided with increases in the prices of petrol, diesel, and aviation fuel, intensifying pressure on households, businesses, and the aviation industry.
Key points
- The G7 will release up to 100 million barrels of oil from strategic reserves over the next four months.
- The release will be coordinated through the International Energy Agency (IEA).
- The move aims to ease soaring energy prices caused by disruptions to shipping traffic.
