Group of Seven countries agreed to release 100 million barrels of oil and diesel from emergency reserves through the International Energy Agency in an effort to reduce volatility in global energy markets. A joint leaders’ statement published by the Canadian prime minister’s office on October 2, 2026, said the coordinated release would begin immediately and run for four months. A substantial volume of diesel will be frontloaded during the first 20 days.
The decision came as rising fuel prices increased pressure on households, businesses and economic activity. G7 leaders said exceptional volatility in oil markets threatened stability and required coordinated measures to strengthen near-term supplies. The Associated Press and Reuters reported that the package covers both diesel and crude oil. The stated aim is to ease immediate supply stress and limit the wider economic impact of energy-price shocks.
The agreement includes more than the stock release. G7 members will coordinate refinery maintenance schedules to avoid simultaneous shutdowns that could remove large amounts of processing capacity. They will also temporarily raise utilization rates where feasible. The group encouraged countries with significant refining capacity to increase production of refined products, particularly diesel, which has faced the most severe pressure.
G7 leaders also reaffirmed that they would avoid restrictions on trade in energy and energy products between their countries. They called on other producers to refrain from imposing export bans that could intensify market tension. That provision is designed to protect cross-border flows while emergency stocks are introduced into the market. It does not set a universal prohibition, but it establishes a commitment among G7 members and a request to other suppliers.
The IEA will monitor implementation and assess the effect of the measures on energy security and market stability. The leaders asked for a follow-up report before the first 20 days have elapsed. The report is expected to include practical recommendations for future emergency responses and for replenishing reserves. G7 members said they could meet again through the IEA framework to consider additional diesel releases if necessary.
The new action follows a much larger reserve program announced in March 2026. IEA Executive Director Fatih Birol said around 325 million barrels from the 400 million barrels pledged in March had already been released, representing more than 80% of the earlier commitment. According to the agency, that action helped bridge the supply gap and reassure markets during an exceptional period of disruption. Crude flows from the Middle East have since recovered significantly, but refined-product flows remain severely constrained, especially for diesel.
Birol told Reuters that oil prices had begun to fall after the latest decision. That early market move does not guarantee a lasting price effect. The new volumes will enter the market over four months, national contributions will be coordinated through the IEA, and prices can still respond to changes in supply, transport and demand. The G7 statement therefore said the measures would be monitored and adjusted if needed.
Strategic reserves are designed as a short-term response to serious supply disruptions, rather than a substitute for permanent production. Under the IEA system, participating countries can release government-controlled stocks or temporarily reduce mandatory industry stockholding requirements. The 100 million barrels are therefore not newly produced supply; they are previously stored crude and refined products made available on a coordinated timetable.
Diesel is at the center of the plan. The IEA said crude exports from the Middle East had recovered substantially while flows of refined products remained tight. Frontloading diesel during the first 20 days is intended to address that specific shortage. The actual effect on prices, inventories and refinery operations will become clearer when the IEA publishes its short-term implementation report.
