In response to President Donald Trump’s call for additional emergency oil supplies, U.S. allies have pledged to deliver barrels they initially promised back in March but had yet to release.
The G7 nations announced on October 2 that they would release 100 million barrels of crude oil and diesel over the next four months, as reported by Al Jazeera. Trump had suggested that he might halt U.S. diesel exports if these allies didn’t increase their fuel releases.
However, this new commitment essentially wraps up an earlier release initiated by the International Energy Agency (IEA) in March, rather than introducing any fresh oil, according to a document reviewed by Euronews.
The U.S. is currently drawing 172 million barrels from its Strategic Petroleum Reserve, with the IEA noting that member countries still possess around 1.1 billion barrels in their emergency reserves, including over 200 million in diesel.
The IEA did not respond urgently to comments requested by the Daily Caller News Foundation.
“The United States has taken various steps to reduce diesel and gasoline prices, such as reopening the Strait of Hormuz for commercial traffic with U.S. Navy support, urging European partners to release more diesel, and adjusting regulations to increase U.S. gasoline supplies,” a spokesperson for the Energy Department stated.
Energy Secretary Chris Wright mentioned in an October 2 post on X that the majority of the released oil would greatly benefit American farmers, truckers, and builders.
The document also noted that, because some members over-delivered, the previously mentioned 100 million barrels in the G7 agreement could essentially be fulfilled through ongoing actions, provided every member holds to their commitments.
The earlier release covered a total of 400 million barrels, with about 325 million barrels already dispatched as of Wednesday, according to the IEA.
Releasing the remainder of what was promised would potentially add another 100 million barrels, the agency indicated.
Max Pyziur, a director of research at the Energy Policy Research Foundation, suggested that while the U.S. share of the total release may seem large, it aligns with the country’s significantly higher petroleum intake compared to others.
He pointed out that the pressing issue is a global deficit of around 1 million barrels per day in diesel exports, with a significant portion previously sourced from the Persian Gulf. Meanwhile, U.S. refineries, operating at 92 percent capacity, are contributing additional diesel supply, about 400,000 barrels daily.
“The most effective solution lies in restoring lost diesel production facilities, whether in the Middle East or by expanding capacity elsewhere, which will take substantial time,” he added.
Jason Hayes, a senior fellow for energy and environment at the Heritage Foundation, stated it makes sense for the U.S. administration to urge allies to fulfill their commitments. At the same time, expanding domestic production and refining capacity is also reasonable, along with avoiding policies that limit diesel exports, which would ultimately lead to reduced fuel supply and increased costs.
“Sustainable price relief can only come from boosting supply, instead of simply attempting to manage dwindling resources of essential transport fuels,” Hayes said.
Richard Goldberg, a senior adviser at the Foundation for Defense of Democracies and former counselor for the White House National Energy Dominance Council, noted that Europe’s hesitance to send naval support or release refined fuel reserves could weaken U.S. leverage over Iran, especially if a less favorable president were in power.
“Iran isn’t supported by European indecision, and our progress remains limited,” Goldberg remarked.
Navy Admiral Brad Cooper leads U.S. Central Command, overseeing military operations in the Middle East.
Goldberg further observed that some parts of Europe are shifting from green energy back to traditional energy sources. He believes it’s reasonable to ask Europe to contribute to an additional energy strategy for the West rather than one focused on reduction.
Economist J.D. Foster reflected on why the Europeans delay their commitments until under pressure from Trump, suggesting it isn’t intentional deceit but rather a complex and dysfunctional governance structure that requires external motivation to elicit action.
Foster also pointed out that reports have indicated oil shipments from the Middle East have returned to levels seen before the Iran War, suggesting a temporary pause on drawing from the Strategic Petroleum Reserve could be beneficial.
The IEA’s Executive Director, Fatih Birol, stated that the agency is prepared to release additional stocks to the market as necessary.
In related developments, European diesel futures experienced a 6 percent increase on Wednesday, following IEA members sticking to their March commitment rather than announcing further releases.
As of Friday, U.S. diesel prices averaged $6.28 per gallon, as reported by the American Automobile Association.
The IEA endorsed hastening the remaining releases from March and completing them “as soon as possible,” according to their announcement.
