Kevin Hassett says diesel reserve release could have ‘massive positive effect' as G7 reaches deal

• The release will occur over four months with significant diesel supplies delivered within the first 20 days, directly addressing price pressures without requiring refining processes
• European strategic reserves contain refined products like diesel, unlike the U.S. Strategic Petroleum Reserve which holds crude oil, making Europe's contribution immediately usable
• G7 leaders committed to coordinate refinery maintenance schedules to prevent simultaneous capacity shutdowns and temporarily increase utilization rates where feasible

Summary

Key Development:

The G7 countries have agreed to a coordinated release of 100 million barrels of crude oil and refined fuel products from emergency reserves over four months. The agreement includes a front-loaded, substantial diesel release within the first 20 days, aimed at easing fuel prices following pressure from the Trump administration.

Key Figures:

• Kevin Hassett, White House National Economic Council Director, stated the diesel reserve release could have a "massive positive effect"
• President Trump announced on Truth Social that Europe agreed to release diesel from their "heavily stocked" reserves, with the process beginning immediately

Critical Distinction:

Hassett emphasized a key difference between U.S. and European strategic reserves: the U.S. Strategic Petroleum Reserve contains crude oil, while European reserves include refined products like diesel. This matters because refined products can be supplied directly to markets without requiring additional refining.

Market Implications:

The coordinated release aims to:

• Stabilize immediate energy supplies
• Shield households and businesses from price shocks
• Strengthen long-term resilience of global energy systems
• Provide relief for diesel prices amid volatile oil markets

Additional Measures:

G7 leaders committed to coordinating refinery maintenance schedules to prevent simultaneous capacity shutdowns and temporarily increase utilization rates where feasible.

Context:

This action follows previous coordinated emergency releases, including one in March that primarily consisted of refined oil products from Europe, as governments respond to global supply disruptions.