Crude oil futures declined after the Group of Seven (G7) nations agreed to release 100 million barrels of oil and fuel from emergency reserves. The G7 announced this decision on October 2. The U.S. administration pressured European allies to tap into their stockpiles, aiming to lower surging global fuel prices. The U.S. had warned of a potential ban on its own diesel exports without coordinated action.
The plan includes a front-loaded release of diesel from European reserves within the first 20 days. The total 100 million barrels will be released over four months. This move aims to increase supply and ease tight market conditions, as diesel prices had reached record highs. Following the announcement, West Texas Intermediate (WTI) crude dropped by over $2. Brent crude also fell. The market priced in the additional supply.