WASHINGTON, Oct 2 — The Group of Seven (G7) industrial nations said they agreed to release 100 million barrels of oil, starting with “substantial” amounts of diesel after the fuel recently hit record-high prices in the United States (US), where President Donald Trump said the diesel release would happen “immediately".
The Associated Press (AP) reported that Trump and his Republican Party face pressure to address surging prices ahead of November’s midterm elections.
He announced the action on Friday on social media, saying, "Europe has just agreed to release a massive amount of their heavily stocked diesel oil. The process will begin immediately.”
The President faces lagging approval ratings as the Iran war and his trade battles have increased US prices for oil and other goods.
Gas prices in the US and abroad have soared during the eight-month-long war, a cost Trump has repeatedly said is worth it to make sure Iran does not obtain nuclear weapons. He has insisted prices will come down after the war, but there is no end in sight.
The American Automobile Association reported that the national average for a gallon of diesel in the US was US$6.37 on Friday, after hitting a record US$6.52 on September 22.
Trump spoke overnight with G7 chair cum French President Emmanuel Macron about the need to address rising fuel prices and the availability of petroleum products. Macron then chaired a videoconference of G7 leaders on Friday to discuss the issue.
France holds the rotating presidency of the G7 group and made the announcement in a statement released after the videoconference. The International Energy Agency will coordinate the effort to combat soaring fuel prices.
“We will implement our commitments with a coordinated release through the IEA of 100 million barrels to begin immediately over 4 months, including a frontloaded substantial diesel release within the first 20 days by G7 members and partners,” G7 said.
A new AP-NORC poll found that a majority of US adults blame Trump for higher prices, and approval of his handling of the economy hit a new low.
Trump has grown increasingly frustrated with what he sees as a disconnect between his achievements and the public’s view of his work. Earlier this week, he gave himself an A-plus for his work on the economy but said, "We are doing an extremely poor job of promotion.”
