European Union countries will only take action after the International Energy Agency (IEA) confirms that releasing oil and diesel reserves will not harm the energy security of this bloc. Three diplomats familiar with the matter reported on the recent decisions of European Union countries.
G7 agreement to release 100 million barrels
The G7, which includes Italy, Japan, Germany, the United Kingdom, France, and the United States, agreed on Friday to release 100 million barrels of oil and diesel. This decision was made after U.S. officials threatened to ban diesel exports if access to reserves was not granted.
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IEA emphasizes existing conditions
The International Energy Agency emphasized in a meeting held on Wednesday that the release will come from reserves specified in an agreement made in March and will not include additional supplies. In other words, this release will be limited to fulfilling previous commitments.
In a meeting held on Wednesday afternoon, European Union officials confirmed their position and promised to postpone any future releases until a clear assessment of market conditions and energy supply risks is provided by the International Energy Agency. One diplomat stated that member countries need to know "how low they can go."
Risks of releasing reserves
Given the rising diesel prices due to airstrikes on energy infrastructure in Russia and the Middle East, some European Union countries have warned that releasing reserves at this time may leave them vulnerable to supply crises. According to the International Energy Agency, there are sufficient inefficient reserves among its members to meet the promise of releasing 100 million barrels.
Of the 400 million barrels promised in March, 325 million barrels have been released, however, some countries have released more than they initially promised. This means that about 100 million barrels remain that member countries can release under this agreement.
The International Energy Agency stated that this new commitment represents the "completion" of the March agreement. Members of this agency include wealthy European countries, North America, and East Asia.
Future negotiations on release details
Reports indicate that France and Germany, which have some of the largest reserves in Europe, have stated that they will not carry out specific releases in line with their previous commitments. It is still unclear what share of the releases non-EU countries in the International Energy Agency will accept.
Further details regarding the distribution of the G7 releases will be discussed at the board meeting of the International Energy Agency next week.
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