Europe will release 42 million barrels of oil reserves over the next three months to ease prices, according to France's economy minister Roland Lescure. Half of the release will be diesel.
Europe will release 42 million barrels of oil reserves into the market over the next three months as part of its commitment to ease prices, Lescure said Thursday. He spoke ahead of a meeting of European Union energy ministers in Luxembourg.
Half of that release will be diesel, Lescure said. Separately, Group of Seven nations agreed last month to release up to 100 million barrels, which Bloomberg described as completing an IEA-coordinated 400-million-barrel release in March.
A French release of 10 million barrels of diesel, announced last month, would hit the market in the coming days, with the impact on prices felt as soon as next week, Lescure said. The reserves would be supplied at cost price, lowering prices by 12 cents to 18 cents a liter, he said.
According to Lescure, diesel is "at the heart of our challenges". He hoped the crisis would be resolved slowly, but surely, and said Europe would keep its options open for further stockpile releases.
Source: Rigzone
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