G7 nations agree to release 100 million barrels of oil, including diesel, amid energy crunch | CBC News

Move would start with 'substantial' diesel release within first 20 days

The G7 nations said they agreed to release 100 million barrels of oil, starting with "substantial" amounts of diesel, after the fuel recently hit record prices in the United States.

U.S. President Donald Trump said on social media the diesel release would happen "immediately," echoing a G7 promise to start immediately with a "frontloaded substantial release" of diesel within the next 20 days and the rest over four months.

Trump and his Republican Party face pressure to address surging prices ahead of the Nov. 3 midterm elections.

The president faces lagging approval ratings as the Iran war and his trade battles have increased U.S. prices for oil and other goods.

Gas and diesel prices have soared during the eight-month-long war, a cost Trump has repeatedly said is worth it for making sure Iran does not obtain nuclear weapons. Trump has insisted prices will come down after the war, though there's no end in sight.

The average price of diesel in Canada was $2.63 per litre as of Thursday, though prices were higher in some cities, like Vancouver, where a litre of the fuel cost about $2.71. Heightened prices put pressure on transport truck drivers and farmers, who rely on diesel to run vehicles and equipment.

The price of diesel is skyrocketing. Here's why Canadians may soon feel it at the grocery store

France holds the rotating presidency of the G7 group and made the announcement in a statement released after videoconference talks that French President Emmanuel Macron presided over. The G7 countries are Canada, France, Germany, Italy, Japan, the U.K. and the U.S., plus EU representation.

The International Energy Agency will co-ordinate the effort to combat soaring fuel prices.

"We will implement our commitments with a co-ordinated release through the IEA of 100 million barrels (MB) to begin immediately over 4 months, including a front-loaded substantial diesel release within the first 20 days by G7 members and partners," the statement said.

The release follows a March announcement that International Energy Agency member countries would release 426 million barrels of oil and products to stabilize the oil market.