Crude oil edged lower Friday after the G7 nations agreed to release diesel and crude reserves to ease a fuel supply crunch. The move comes as Saudi Arabia reportedly prepares an offensive against Houthi militants in Yemen, with tensions simmering in the Middle East.
G7 moves to release reserves
Oil prices slipped Friday after the Group of Seven announced it would tap diesel and crude stockpiles to cool surging fuel prices. Brent crude futures lost 6 cents to settle at $102.25 per barrel, while U.S. West Texas Intermediate crude shed $1.76 to close at $91.11 per barrel.
The G7 — France, Canada, Germany, Italy, Japan, the United Kingdom and the United States — said it will deploy 100 million barrels of reserves over the next four months, with a frontloaded diesel release in the first 20 days. The group's leaders described the move as a response to the fuel shortfall in a joint statement.
Saudi offensive adds to Middle East tension
But even as Western nations prepare to release more stocks, tensions in the Middle East are simmering. Saudi Arabia is planning an offensive against Iran-backed Houthi militants in Yemen, regional and Western officials told Reuters.
Washington presses Europe on diesel
The Trump administration has called on Europe to release its own diesel stocks as the world faces a fuel shortfall tied to the wars in Eastern Europe and the Middle East. Treasury Secretary Scott Bessent said Thursday: "American farmers, truckers, and businesses should not be left carrying the burden" of a global diesel shortage.
President Donald Trump has indicated the U.S. could impose a diesel export ban, though he appeared to cool on the idea this week because of its potential effect on gasoline prices. That matters for Europe: the U.S. supplied around half of the EU's diesel imports in August, according to the International Energy Agency, leaving the 27-nation bloc exposed to any export restriction.
Source: CNBC
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