Europe will release 42 million barrels of oil reserves into the market over the next three months to ease prices, France's economy minister Roland Lescure said Thursday. Half of that release will be diesel. This move follows the Group of Seven nations' agreement last month to release up to 100 million barrels, marking completion of an IEA-coordinated 400-million-barrel release in March.
A French release of 10 million barrels of diesel announced last month will hit the market in the coming days, with price impacts felt as soon as next week. The reserves will be supplied at cost price, lowering prices by 12 to 18 cents per liter. Lescure stated diesel is "at the heart of our challenges" and hopes the current crisis will be resolved "slowly, but surely," keeping options open for further stockpile releases.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing