French President Emmanuel Macron announced on 2/10 that the International Energy Agency (IEA) would coordinate the release of oil over the next four months. Macron, the current G7 chair, stated: "G7 members and partners will release a large amount of diesel within the first 20 days."

This decision follows a US declaration that it might ban diesel exports if European nations failed to boost supplies. Despite the urgency, releasing strategic reserves poses a risk to Europe's essential supply, a continent already heavily reliant on imports.

In March, the IEA had previously coordinated a plan to release 400 million barrels of crude oil from strategic reserves after conflict erupted in the Middle East. US President Donald Trump has consistently criticized Europe for its slow pace in releasing oil.

Macron elaborated: "We have jointly committed to releasing strategic reserves, focusing on diesel. We also pledged to ensure there will be no export ban, a point President Trump has made very clear."

The price spread between diesel and crude oil, a key indicator of market strength, sharply declined as traders reacted to news of the additional supply.

Afterward, Trump welcomed the decision in a social media post, writing: "Europe has just agreed to release a large amount of diesel from their abundant reserves. This process begins immediately."

Earlier reports from Reuters, citing a close European source, indicated that the US had requested the EU release 120 million barrels of diesel over the next six months.

By Ha Thu (Reuters)