IEA to meet over proposed release of oil, diesel stocks, two EU diplomats say

The governing board of the International Energy Agency will hold an informal meeting at 1 p.m. on Wednesday to discuss a proposed release of oil and diesel stocks, two European Union diplomats said.

The representatives of EU nations had already discussed the proposed release at a meeting on Wednesday morning, added the diplomats.

A surge in diesel prices has turned the fuel, which underpins trucking, agriculture and industry, into a global political and economic concern. The wars in Iran and Ukraine have curtailed exports and damaged refineries, helping drive a rise in prices.

Oil settles lower after Europe agrees to tap diesel reserves

The Group of 7 countries agreed last week to a 100 million barrel release of crude and diesel after U.S. President Donald Trump warned some European countries that if they did not release more diesel, the U.S. would ban diesel exports.

The G7 includes the U.S., UK, Japan and Canada, along with EU nations France, Germany and Italy.

It was not immediately clear if the G7 agreement would simply release the remaining share of an IEA-coordinated 400-million-barrel release countries had committed to in March, or add extra volumes on top of this.

Germany’s economy ministry said it was working on the approval of the release of energy reserves, and will participate in the issuing of volumes already set by the IEA in March.

March’s move, prompted by the Iran war, was the biggest emergency stock release ever.