Oil prices fall as G7 agrees to release 100 million barrels of reserves

Oil prices fell sharply on Friday after G7 members announced a coordinated release of strategic oil reserves through the International Energy Agency over a period of four months.

The group announced 100 million barrels of oil and diesel will be released, to ease supply concerns that have caused prices to skyrocket.

The measures come following pressure from President Donald Trump to tap the European Union’s strategic diesel reserves or face a US ban on diesel exports.

International benchmark Brent crude briefly fell below $100 per barrel before stabilising around $102, while US oil prices slumped by up to five per cent.

While exports of crude oil from the Middle East have been returning to near pre-war levels in recent weeks, the situation for fuels like diesel remains tight due to refineries being damaged during the conflict.