G7 Releases Emergency Oil to Help Lower Danish Diesel Prices

Danish motorists may soon get relief from record-high diesel prices. The G7 nations agreed to release emergency fuel reserves. They will release up to 100 million barrels of fuel over the next four months. The International Energy Agency will coordinate the release.

Denmark reached a record diesel price of 19.19 Danish kroner per litre in September. The new supply aims to balance global energy markets. Oil prices on international markets fell after the announcement. However, experts warn prices will not drop immediately.

Jens Nærvig Pedersen is a senior commodities analyst at Danske Bank. He expects the reserves to cushion the Danish market. Yet it cannot solve the main supply crisis. The crisis is caused by the conflict in the Middle East.

US President Donald Trump previously considered banning diesel exports to Europe. Europe relies heavily on imported diesel. Trump confirmed Friday he will not ban diesel exports. G7 members also agreed not to restrict energy trade among themselves.