OIL and diesel fuel prices fell after the Group of Seven (G7) agreed to release crude oil and fuel from emergency stockpiles and pledged not to restrict energy exports.
December Brent crude futures dropped 1.1 per cent to US$101.23 a barrel, while December West Texas Intermediate futures slid 2.3 per cent to US$90.70 a barrel, with prices remaining lower throughout the morning as Middle Eastern export figures showed signs of recovery.
The G7 announcement involves releasing 100 million barrels of oil and fuel products over the coming months, beginning with a substantial early release of diesel after prices for the fuel reached record highs in the United States.
US President Donald Trump stated that the diesel release would begin immediately, whilst a formal G7 statement confirmed a heavily front-loaded distribution over the next 20 days.
The move comes as President Trump and the Republican Party face growing pressure to tame surging fuel costs ahead of the US mid-term elections on 3 November.
Public approval of the president's economic performance has fallen to a new low, according to an AP-NORC poll, driven by rising prices caused by the war with Iran and ongoing trade disputes.
Fuel prices in the US and globally have soared during the eight-month conflict, though Trump has repeatedly maintained the economic costs are justified to prevent Iran from obtaining nuclear weapons.
The national average for diesel in the US stood at US$6.37 per gallon yesterday, down slightly from a record peak of US$6.52 on 22 September, according to AAA data.
France, which currently holds the rotating G7 presidency, issued the joint statement following a video conference chaired by French President Emmanuel Macron. The International Energy Agency (IEA) will coordinate the global effort to stabilize energy markets.
"We will fulfill our commitment through an IEA-coordinated release of 100 million barrels over a four-month period, starting immediately, including a large front-loaded release of diesel within the first 20 days by G7 members and partners," the statement read.
Despite calls from several US Republicans to ban domestic diesel exports to lower home prices, G7 nations, including the US, formally agreed to keep energy trade open between member states.
"We reaffirm our commitment to avoiding export restrictions on energy and energy products among G7 nations, and call on all producers to refrain from imposing limitations that could exacerbate market tensions," the group stated.
The agreement followed overnight discussions between Trump and Macron regarding fuel availability and surging costs, leading to Friday's summit between G7 heads of state. White House officials confirmed Trump participated in negotiations specifically targeting the release of European diesel reserves.
The economic intervention coincides with Trump launching a 32-day campaign rally tour aimed at helping Republicans retain control of the US House of Representatives and Senate in the upcoming election.
The president has expressed growing frustration over public perceptions of his economic stewardship, stating earlier this week that while his performance deserved an A+ grade, his administration had done a poor job promoting its achievements. - October 3, 2026
