IEA Governing Board to Hold Wednesday Session on Proposed Diesel and Oil Stock Drawdown

By Kate Abnett

BRUSSELS, Oct 7 (Reuters) – According to two European Union diplomats, the governing board of the International Energy Agency (IEA) is set to hold an informal meeting at 1300 local time (1100 GMT) this Wednesday to discuss a proposed release of oil and diesel stocks.

The diplomats added that representatives of EU nations had already discussed the proposal during a meeting on Wednesday morning.

A spike in diesel prices has transformed the fuel, which supports trucking, agriculture, and industry, into a pressing global political and economic issue. The conflicts in Ukraine and Iran have restricted exports and damaged refining capacity, driving the price increases.

Last week, the Group of 7 nations agreed to a 100 million barrel release of crude and diesel, following warnings from US President Donald Trump that certain European countries would face a US diesel export ban if they failed to release more fuel.

The G7 comprises the United States, United Kingdom, Japan, and Canada, along with EU member states France, Germany, and Italy.

It remained unclear whether the G7 agreement would simply release the remaining portion of the 400-million-barrel IEA-coordinated release countries committed to in March, or add extra volumes on top of that commitment.

Germany’s economy ministry stated it is working on the approval of the energy reserve release and will participate in issuing volumes already designated by the IEA in March.

The March operation, prompted by the Iran war, was the largest emergency stock release in history.

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