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100M oil barrels to be released for lower fuel costs
Reports say the international G-7 have agreed to released 100 million barrels of oil to help reduce gas prices. UH VP for Energy and Innovation, Prof. Ramanan Krishnamoorti, gives FOX 26's Rashi Vats an estimated timeline for the price change.
The G7 nations announced on Friday they plan to release 100 million barrels of oil and diesel fuel amid skyrocketing prices.
Diesel to be released ‘immediately’
Dig deeper:
To start, a "substantial" amount of diesel will be released "immediately" in the next 20 days.
The rest will be released over a span of four months.
FILE - A sign displays the price of regular gasoline and diesel fuel at a Shell gas station in Torrance, California, US, on Monday, Sept. 28, 2026. (Photographer: Caroline Brehman/Bloomberg via Getty Images)
Diesel prices in the U S
Big picture view:
Though the nations did not specify how much of the fuel being released would be diesel or unrefined crude oil, it comes as the president’s approval ratings hit a new low, according to The Associated Press.
Gas prices in the U.S. and abroad have soared during the eight-month-long war.
The national average for a gallon of diesel in the U.S. was $6.37 on Friday, according to AAA, after hitting a record $6.52 on Sept. 22. Diesel prices have hit records in Europe, too.
The release of diesel in Europe could mean less exports of diesel from the U.S., which could lead to lower prices between 25-50 cents per gallon after a few weeks, Michael Lynch, distinguished fellow at Energy Policy Research Foundation, told AP.
Why you should care:
The price of diesel futures in the U.S. fell 6% on Friday, according to The New York Times, and that usually triggers gas prices to fall, though it could take as much as two weeks.
No more export bans
Meanwhile:
In addition to releasing the fuel, a G7 statement said the group agreed not to limit energy exports to each other as some Republicans have called upon Trump to initiate one.
Oil market analysts warned a U.S. export ban could lower prices in the short term but eventually backfire by reducing supplies of gasoline since diesel output can't be lowered without also cutting overall refinery production.
Asked about a potential U.S. export ban on Friday, Trump said "we were never going to do it."
"We’re not going to be doing the export ban," Trump told reporters at the White House. "We’re going to be doing what we’re supposed to do." He added that Europe is making "a major world contribution, and so are we."
The Source: Information for this article was taken from reporting by Reuters, The New York Times and The Associated Press.