Oil prices showed mixed movements on Friday following the Group of Seven (G7) nations' announcement to release 100 million barrels of crude oil and fuel reserves over the next four months. Brent crude rose 9 cents to $102.40 per barrel, while U.S. West Texas Intermediate (WTI) fell $1.47 to $91.48.
According to a joint statement by G7 leaders, the release will prioritize diesel supplies, with a substantial portion scheduled for distribution within the first 20 days. The coordinated intervention aims to enhance fuel availability and stabilize global energy markets amid ongoing supply concerns.
The announcement comes against the backdrop of escalating Middle East conflict, which has raised fears of potential shipping disruptions through the strategically vital Strait of Hormuz. In response to tightening global supplies, U.S. President Donald Trump indicated he is reconsidering proposed restrictions on domestic diesel exports.
Data from the International Energy Agency (IEA) highlights that the U.S. accounted for nearly half of the European Union’s diesel imports in August, underscoring Europe’s heavy reliance on American fuel supplies. Meanwhile, reports of the U.S. deploying an additional aircraft carrier strike group and an amphibious force carrying 2,000 Marines to the region have heightened concerns over further geopolitical escalation.
Market analysts note that the ultimate impact of the G7 stockpile release on oil prices, supply stabilization, and global inflation will depend on how quickly the reserves are distributed and how regional conflicts affect broader energy dynamics.
