G7 releases 100 million barrels to curb the surge in crude oil prices

G7 leaders reconfirmed on October 3 the decision, announced the previous day, to release up to 100 million barrels of crude oil and diesel from the strategic reserves of the seven member countries. This is a ceiling, not a guaranteed quantity: the operation begins immediately and will extend over four months, with the stated aim of containing the volatility in oil markets that in recent days has pushed energy prices upward.

According to Le Monde, confirmed by Euronews, a significant share of the diesel released from reserves is expected to reach the market within the first twenty days of the operation, in an attempt to provide rapid relief to consumers. The average diesel price in the European Union stands at 2.24 euros per liter, a record level reported by both Le Monde and Euronews, with pump prices showing no signs of decline so far.

The decision comes at the end of an extraordinary G7 video summit explicitly dedicated to energy security. In the joint statement released at the end of the meeting — reported by Palazzo Chigi and Euronews — the leaders said they were facing price swings described as unprecedented, capable of jeopardizing the stability of the global economy, and agreed on common responses to ensure supplies and protect households and businesses.

The coordinated release of strategic reserves is the tool G7 countries turn to during periods of acute tension in energy markets, when supply struggles to keep pace with demand or when sudden shocks push prices beyond levels considered sustainable for national economies. The measure announced this week covers both crude oil and diesel, the two products most affected by the tensions of recent weeks.

Unprecedented volatility in oil markets, with prices threatening economic stability — joint statement by G7 leaders

Based on what has been disclosed so far, it is not yet possible to determine the immediate effect on European prices: the release of 100 million barrels over four months represents a significant but not enormous quantity relative to overall consumption, and the real test will come in the coming weeks with the trend of pump prices in the countries most exposed to rising diesel costs.

What remains to be seen, beyond the announcement, is how quickly the share of diesel destined for the European market will translate into a reduction from the 2.24 euros per liter that today represents the record level recorded in the Union.